thecook, the last thing you want to see is Zamia attempt to fund this thing in-house. The capital raisings required to get a ++$600M moly mine going would equate to over $2 per current share on issue. I don't know about you but I can't dig enough money out of my back pocket to cover $2 for every share I currently own in ZGM.
I think people have to get over this dilution crap. You want the company to get $10M in the next few months to fund the PFS and further infill drilling. You don't want to pay for this all yourself - you want the risk spread about, get the shares out there and get ZGM on the lips of more people. You want liquidity in the register. Most importantly, you want more shares issued and more cash because then your market capitalisation increases, which makes the next step of financing a mine that much easier.
So, if ZGM management is fair dinkum about this, once they've got their shiny new JORC they will do a SPP with an attached rights issue, double the shares on issue in one go, and get swags of cash to afford the next 12 months of metallurgical tests. Keeping this in-house is stupid, and I'll sell if they don't get serious.
As for the SX-EW idea for treating the oxides, it is a great idea but it will need a keen metallurgist and a lot of research, including a pilot plant, bulk large diameter core to suply a few tonnes of material, and so on. This isn't going to be quick, nor easy, and it'll cost a lot of money and the punters will get bored.
Don't get me wrong, I'm positive on ZGM. But I'm realistic, and I don't want to see piffling about with this on the corporate side because this isnt going to be a cheap project.
ZGM Price at posting:
14.0¢ Sentiment: LT Buy Disclosure: Held
