If LH doesn't proceed after the FS is completed it may be required to pay a Breakout fee of $4 million.
However, from my understanding they will start the Trial HL mining operation before the completion of FS, so the results of the HL trial mining will assist in completing the final feasibility study, see last quarterly announcement.
As the Trial HL mining is before the mining operation starts, all costs for the Trial HL mining operation should be paid by LH.
From past announcements its my understanding the Trial HL operation aims to be cash flow positive, it will then be developed into a full HL mine with the help from its cash flow and from there it's production will be scaled over time up to a bigger operation via the operations cashflow.
LH will be crazy to pull out, with a booming Gold market, being a shallow resource (near surface in parts), Metallurgical testwork showing 87-89% recoveries and having spent quite a bit of money already:
- drilled one diamond hole and one RC hole
- Engineering mine design: site layout for a trial mining and heap leach operation, is almost complete
- Flora and fauna survey fieldwork completed
- approval of Water Abstraction licence of 450,000kL per annum was received from DWER
- Metallurgical testwork
- Geotech studies and test work
- Completion of a Heritage survey
- Forums
- ASX - By Stock
- Ann: Gold Mineralisation Extended at Cross Fault
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If LH doesn't proceed after the FS is completed it may be...
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7.2¢ |
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Mkt cap ! $16.49M |
Open | High | Low | Value | Volume |
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No. | Vol. | Price($) |
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7 | 789280 | 0.070 |
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Price($) | Vol. | No. |
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0.081 | 10000 | 1 |
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