$15 Mil Drawdown, Steering Comitt, Plant orders

Like the majority of the CNQ shareholders I am very disappointed with the progress to date but my understanding the Japanese dot every eye and cross every tee.

Now that the Mitsubishi Board approved the LOAN on 7 October 14 after Approx 18 Months Plus of due diligence CNQ have proceeded with finalizing the fine print with Mitsubishi.

In the Dec Quarterly CNQ Management & Board have set some very very clear milestones to be achieved in this quartier.

• “Carbine is finalizing the conditions precedent requirements and cash drawdown arrangements of the Mits LOAN and will be visiting Japan in coming weeks to conclude these items.” (I assume an announcement Late Feb Early March).
• Mitsubishi have appointed a Management representative to participate on the Project Steering Committee who plans to re-locate to Cairns from Japan, to monitor the project development during construction and ramp up phases.” (Mits are taking a hands on approach) This relocation should also be in weeks.
• Carbine has also been active in preparing the engineering and construction package details for the stockpile project phase and has been detailing the scope of work for the award to a suitable engineering and construction management company. A number of suitable companies have been short-listed and discussions and commercial terms are under review” (I get the impression this will be a “Turnkey” project approved by Mitsubishi.) I would like to think order would be place by the end of the Qtr. (30 March)

I also note the comment:-
Mitsubishi have taken a “further interest in the 50% product off take rights from the open pit phase of the hard rock project development by way of promoting the project to other interested investment parties and stakeholders who wish to participate in the project’s overall development”

We all could speculate. But this comment and the VML comments make me think of the Tungsten HUB concept.


Interesting Comment.
“Strategic stockpiles of tungsten in the USA are expected to be exhausted during 2015 and this scenario is also likely to support a strong and increasing tungsten price”

Frustrating to long-term holders but if the Management and Board of CNQ hit the self imposed milestones we should be happy.

I welcome constructive comments.

Please DYOR.