This cobalt project looks very promising indeed. This is by no means a small potential project. Its massive potential. The nearby cobalt and copper resources prove that.
It is clear from both the Red Valley Li project and now the Mokabe-Kasiri Co project that RMX directors are not interested in small fry projects. They have managed to land 2 huge risk reward projects in the energy minerals sector. Until the resources are proven, there are significant risks and the market will price those in - however it will also price in the potential, and the potential is driven by more than what we have in the ground, including possible interest by suitors.
This cobalt project has astonishing potential to deliver shareholder value. And it could do it rather quickly. If the term sheet is fully taken up there is IMO going to be very significant interest from state owned Chinese companies who will are highly likely to make an offer. The state owned China Molybdenum (CMOC) owns a controlling stake in the nearby Teneke Fungurume mine after they paid nearly $3B for it in May last year prior to the Cobalt price racing off. That mine is only approximately 70 km from our leased area.
I see significant upside potential playing out here in that there is no reason RMX wouldnt complete the required due diligence, progress and fullfill the term sheet conditions, obtain the mining permits, and commence drilling the project area. It is possible we could establish a comparable Cobalt and copper resource to those known nearby. At that point it is almost a certainty IMO that CMOC would make a move. What would that resource be worth to them. Enough to fully fund a Lithium brines operation in Utah?
Below is a photo from the Lundin Mining Website of the Cu Co mineralisation in areas of the Tenke tenements (24% stake in Tenke Fungurume mine). This is the geological setting of our project in the DRC.
Much work to be done from here by our team to confirm, develop and deliver SH value on these projects, but they are simply huge RvR Plays.
RMX Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
(20min delay)