phoenix valuation, page-42

They can't just build a plant and use that. In order to do so they'd need to complete a definative feasibility study on the mine or mines to use to attain capital. this would involve metallurgical testing, lots more drilling, mining studies, upgrading of resources to reserves, engineering and process determination and possible hedging. All this would cost say $20-30M and take a couple of years.

The alternative is to do what they are doing now, which is risk free generation of capital to fund the above mentioned procedure. This keeps the share register tight, gives existing shareholders full upside, limited downside risk. It also may partly fund the future plant, negate the need for hedging, bring forward long lead time items and reduce the overall risk. It can negate the need for capital and also reduce the cost and duration of capital needs.

This strategy is pure genius.