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28/09/18
10:39
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Originally posted by lecram
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Clues in here i think.
Are you looking at the potential for off-take agreements?
So far, we have stayed in full ownership, but to get the project into production we have to consider this option. One pathway is a traditional debt/equity model, and the second is to take onboard a partner. We are in discussions with several Chinese groups about taking an investment in the company. We are talking about a premium to share price, and a 20% offtake would translate into between US$30 million and US$70 million into the company. The third and final option would be to sell half of the asset. For example, we could sell the northern half of the project for US$250m-US$300m and funnel the profit back into the remaining side. If choosing the latter, we could be debt-free – no dilution.
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Selling half and creating a competitor would be a mistake.