Heading into 2023As we near the exit of 2022, let's see where we are and where we need to go. First and foremost, financing. The recent financing deal with Sprott streaming is huge. $15 million for drilling and another $60 million on the sideline for construction of the mine. However, and this is a big however, another approximate $80 million will be needed for construction. Having Sprott's initial backing should help in obtaining the remaining financing but I don't think they will ever get it or need it. In my opinion, I doubt Ascendant will ever do a ground breaking. I expect them to either be bought out/merge or sell the property and use the proceeds to look for the next exploration project or an existing mine. I'm keeping my eye on Aljustrel. Are they close enough to Lagoa Salgada to acquire the land and transport rock to their facility without the need to build a mining plant? That could be interesting.
If Ascendant is able to obtain the remaining financing and decides to build the mine, the next major step is to get tonnage to 100Mt. In my opinion, I think is very doable. My belief has always been that we are sitting on the next Neves-Corvo. We have land that still has not been explored/drilled and we still haven't done any deep drilling at the sites where we have already hit outstanding targets. Whoever mines this land is going to have an unbelievable amount of free cash flow.
A couple of other thoughts. If Ascendant decides to build this mine, no more delays. Construction needs to begin in 3rd quarter on 2023. This has dragged on too long. Why would any new investor want to get in now if they can wait another year and get in at the same share price or less. In my opinion, we are a $2cad per share product with a .21cad current share price. I look at Pan Global sitting at the SE end of the IBP and they have more outstanding shares, 1 good drill hole and a share price of .44cad. With everything good we have going, why are we half their share price? Needs to end in 2023.
One last opinion, if Ascendant decides to build this mine, we need to obtain the remaining 5% owned by Mineral & Financial/RedCrop AND the 15% owned by the government of Portugal. We need to have a 100% ownership. Sharing is caring but not in mining. Think of Lagoa Salgada as a bitcoin that you have on FTX. It's your bitcoin but now you're letting others play with it. Doesn't end up well. Ascendant needs to get Lagoa Salgada in their ledger wallet and lock it away from any outside meddling. We don't need to become the next Turquoise Hill.
Finally, Merry Christmas, Happy Hanukkah, Happy Holidays and a Happy New Year! Hope all your investments are green in 2023!