All (IMO) Magnetite sales - Zero chance ! Cobalt sales -...

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h00ts

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03/02/16

18:30

Post #: 16934070
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Originally posted by ozblue ↑

The cap raising has to be close now, or at last quarters spend rate, they will be out of funds in a few weeks. Assuming they have slowed the spend down, the prospectus should be any day now, just after they find a valuable nugget or 2 in the new area, too enhance excitement.

I suspect with new excitement added via possible new finds, the prospectus might go ahead without an underwriter, or at a lower price to get one. The magnetite is going to pull in $195/t (they must have great marketing skills) and 7.7% of the ore is magnetite ( 3mt X .077 X $195 = $45m) a huge boost to profitability

Expect the prospectus out any day, with a short period of marketing then a good news announcement or 2 during the time frame, i.e. the nugget or 2, something ahead of schedule, etc.

Be interesting to see who the underwriter is if they get one, and if they need FIRB approval for the number of shares they are likely to get at 80c.

At the end of the quarter the first $25m must be repaid to Minsheng, so a good slice of the cap raise disappears out the door straight away. Then they need another $25m 3 months later.

You would want the most complex copper plant in the country to work at 100% straight away, with writing on the side that says "Made in China". Not to mention the first 2 parts of the plant, the crusher and ore sorter, didn't work straight away. No mention of the ore-sorter again!!

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All (IMO)

Magnetite sales - Zero chance !

Cobalt sales - Marginally above Zero chance !

Prospectus before the end of February very slim chance !

Underwriting $63m at 80c p/s is close to 80m shares so yes well above the 15% FIRB threshold so potential issues there !

CDU Price at posting: $1.11 Sentiment: None Disclosure: Held
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All (IMO) Magnetite sales - Zero chance ! Cobalt sales -...

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