"half is for mine development. throw an extra 20 million in for rail and a bit for the port plus some for contingency plus project costs."
maybe the deal is an offtake with one/some mills in return for a piece of the early action? why else would you raise capital now for mine development, when there are several pieces of news in the meantime such as drilling results, resource upgrade, rail deals? Maybe the steel mills are saying we will buy the ore and will enter an agreement by want to do so before the next run. That way we cut a win-win deal and with Norgard sitting there as the t/o blocker, the risk of a chinese pre-emptive strike thereafter is somewhat reduced?
$20M for a railway, not enough for cloud break (would be $200M ish +/-) but probably enough for a rail loop on BHPs line as displayed on the BRM announcement on several occasions now.
All conjecture at this point, but the chinese love a win-win deal and as long as they get something out of it, then they will give something back to BRM. What could be better that guaranteed sales of our low grade, high impurity ore that people keep going on about? Not a bad way to shut them up?
No where near enough to fund the 10mtpa case, but what would early startup cost to get some cashflow in the door? I bet more than $100M but with NWIOA a bit of an unknown as to that they may do and my ramblings above, maybe the chinese will be in on 'day one' and then they can stomach raisings at substantially higher levels to fund the rest?
Could be something in this? WR seems too astute to throw our, his and more importantly the Chairman's (21%) for no goo reason. Plenty of skin in the game at Board level!
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