resource upgrade, page-47

Cowboy,

I intentionally left that part of the offtake agreement with an interested buyer for our product out, for one simple reason.

And that was, that the amount of finished ore, may not be sufficient to entace someone to enter into the equation. These prospective buyers, IMHO, are not interested to spend/invest that kind of money for a year or two.
My reasoning of the facts are therefore below.

The facts remain that the amount of finished ore, even with a small size production plant the like of the one proposed to be used by CDU, which will handle/treat about 3 to 3.5 million tonnes of raw material per year, would only have sufficient ore to keep it going for 1 year or a little longer. Now, consider what it will cost according to CDU's talks, and there lies your answer.

Besides what would happen with that plant after the use/need of it was expired???

It is very unusual that anyone would buy a second hand production plant as they are mostly purpose built, and the costs of relocation would be exorbitant. So it would either have to be scrapped, sold to someone else for a hell of a lot less than what we or someone else paid for, or looking for someone around, and close by, that will pay us some fees for the use of it. Bearing in mind that they would have to incur some costs to freight the ore to us for treatment.

As such, IMHO it was useless to make any mention of it, when the chances of succeeding were very very small indeed.

The only way for such a thing to happen, is for AAR to come up with a resource of at least 8 or 10 times the amount announced. Only then IMHO, we would be able to convince someone to put money into our project.

I hope this will help, and please DYOR.

Buddy