CAP 6.00% 9.4¢ carpentaria resources ltd

tax grab, page-22

  1. 9,544 Posts.
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    Thanks for your post TTC. Didn't know about Clive Palmer putting the stop on those mines. Just brinkmanship or a real threat, we'll see. Hope to see you back when waters have calmed down.

    My correspondence from the company confirms what you were saying Leferve re the deal i.e. it is still on and I understand that BMG can't back off due to the new tax.

    However the risk for me is that if BMG and its backers want to get out of this deal because 40% of the "super" profits mined at Hawsons are grabbed by Canberra, they could try and claim that the mine is not viable in the prefeasibility and bankable feasibility studies.

    Stage 1

    • BMG will pay Carpentaria $5.0m cash and $8.0m to fund exploration and Pre Feasibility work to define up to 1 billion tonnes of inferred resource within two years and thereby earn 40% in the project.
    • These payments will be staged over 3 months

    Stage 2:

    • On completion of Stage 1 and a positive Pre Feasibility Study, BMG pays Carpentaria $25.0m and will thereby earn 51% in the Joint Venture.

    Stage 3:

    • BMG funds a Bankable Feasibility Study (estimated cost $20.0m) to be completed within two years of Stage 2.
    • On completion of this Study, BMGs JV interest will reach 80% when a further $23.0m is paid to Carpentaria.

    Stage 4:

    • When a decision is made to develop the Project, Carpentaria retains a 20% free carried interest up to the targeted production of 20 mtpa of iron ore concentrate.


    Currently we are stage 1 and CAP have received or will receive $5m cash plus $8m for exploration work and pre-feasibility work. The spanners could be thrown in where the text is in red, bold and underlined above.

    Please note that these are my own suspicions of how the market is thinking about the $48 million still to be paid in Stages 2 and 3. My interpretation of the possible risks to Stages 2 and 3 are just that, an opinion.



 
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