Woulfe Mining Corp WFEMF

Posco facility & prospects

[biznotstock]

FYI

According to a report (https://rdata.youfirst.co.kr/pdf_data/EN_HD_201209251638_00_CC11_21106403_20120925164017_21106289.pdf), POSCO just started testing in september one of the components of its future moly processing facility in Yeongwol.

Unfortunately, POSCO owns a 20% stake in a huge General Moly project (https://www.generalmoly.com/properties.php) in Mt. Hope, Nevada. So any bad news for General Moly and Mt. Hope is good news for us and our hopes of signing an offtake.

Anyhow, I think it would make sense for POSCO to sell their stake in that project and secure a source which has already been de-risked, is a few minutes away and has government backing: SMC/IMC JV. Once the JV is formed, I think we'll be sollicited.

[mercurysmith]

Biznotstock, all good points regarding any possible offtake with Posco. In your final sentence, you mentioned things would happen once the JV was formed. FYI, the JV is already formed, as indicated in the recent news release as follows: --(Marketwire - Sep 26, 2012) - Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX VENTURE:WOF)(WFEMF)(OZ4.F) is pleased to announce that its

[biznotstock]

Actually, if SMC is still 100% owned by Woulfe, then the deal has not been signed yet and the equity has not been provided either. Signing a legally binding agreement would have to be an NR...considering the significance.    

[mercurysmith]

Biznotstock, again I agree for the most part, with one small exception.  I agree it is proof the $35M has not yet been advanced from IMC to Woulfe.  I agree that will be the most major single n/r since the offtake agreement was signed back in March.  Where I differ slightly is your definition of "legally binding agreement".  A legally binding agreement was signed

[CJHallee]

Well put Mercury.>

[biznotstock]

I have no doubts that the deal will go through and I agree with your post, but I just meant that the JV (the new IMC/WOF entity) has not been formed yet because the deal had not been finalised yet. The conditions for the whole deal to be finalised have not been met yet and they cannot be unless we get financing and provide our share of the loot. We have to receive the $35M (their 25% for SMC), but

[Canon123]

The most likely scenario is that the bank financing and IMC will be finalized together. IMC will want to have the security of knowing WOF is funded and the bank will want the security of knowing IMC is funding what they have said. With the 4-6 weeks for bank financing to do their DD I would expect an announcement in early November for both.

[ark88]

The most likely scenario is that the bank financing and IMC will be finalized together. IMC will want to have the security of knowing WOF is funded and the bank will want the security of knowing IMC is funding what they have said.   I have to disagree. The bank is only interested in collateral and cash flow (ability to make payments). Simple as that. It's the finalization with the IMC

[Canon123]

Cash flow is dependent on IMC finalizing their part of the deal, some of the Collateral is dependent on IMC finalizing their deal. While it makes the most sense to announce the deals seperately (market impact) both want the comfort of the complete deal being a "sure" thing. Anyway time will tell but if I was IMC I know I would want that comfort level of knowing WOF can fund their

[ark88]

Cash flow is dependent on IMC finalizing their part of the deal, some of the Collateral is dependent on IMC finalizing their deal.   I have to disagree. The only collateral that Woulfe can provide is the sangdong mine itself or any other hard asset. The mine plant and the offtake agreement could be worth zero if tungsten prices collapse below cost of production.