RE:RE:Somting to watch Last I checked they have $14M (not $25) cash and that's as of May 2024, with an ongoing burn rate of $1M every 3 months - just ongoing expenses with no engineering, drilling, etc included.
The other $9M noted to probably make your number are marketable securities - a.k.a the shares/ownership and mostly the PNPN shares. They need to sell them which I don't think they will do.
Thsi is from tehjiir MD&A:
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents as of May 31, 2024, totalled $14,311,170, compared to $29,519,719 as at May 31, 2023. It is management's intention to search further capital funding in the form of equity or debts to support current and future exploration and evaluation of assets and project development.
As evidenced by the above, they really have 1 year left if they do some drilling and continue engineering work. CRE will need to either make a deal or dilute at a very low price.
Back to the GT1 (Green Technology Metals)
- Partnered with South Korean battery maker EcoPro Innovations
- Deal is to buy equity at 40% premium to the 90-day average stock price. So in CRE terms if they sell equity to finance 50% ($300M) will be around $0.6/share if the deal is in the next few months.
- Exclusive 1-year period to negotiate and agree to asset-level investment.
That’s not that good of a deal if you ask me – basically the OEM gave them $8M in exchange for locking them for 1 year. Assuming EcoPro wants to see where the market will go and the money will keep the light on for GT1 while they wait to see. If the Market turns around EcoPro will invest more as they have locked them up, if not and still prices are low, they will walk away but the damage will be the $8M they sink in, which is nothing in comparison to the hundreds of millions needed to start construction.
What does that tell you? Battery OEMs are not willing to invest yet so make your conclusions about what to do!