Great to see the team are making some decent progress - PFS very well put together info wise.
Add Rover 4 to the mix and things get real interesting.
On another note, I would assume the past relationships and connections the board have both in a government and finance sense will likely be hugely beneficial for the company. This is not their first rodeo and they have had successfully completed very large scale projects in the past.
I would not be surprised in the slightest if they manage to obtain some government funding for their project (both local with the NT Govt Initiative and and federal with the Critical Minerals Initiative).
Some snippets form the PFS:
"At the release of this study Castile will be eligible to apply for Major Project Status with theNorthern Territory Government. Whilst there is no guarantee Castile will achieve majorproject status, the benefits include: - whole of government support - coordination and facilitation - assistance in identifying and mapping regulatory approvals - a dedicated project case manager and facilitation of engagement with theAustralian Federal Government through a central and single point of contact."
"Rover 1 is located in Northern Australia and will produce cobalt which is considered a criticalmineral by the Australian Federal Government.The recent Federal Budget on 21 October 2022 highlighted support for critical mineralsprojects and projects located in Northern Australia via the Critical Minerals DevelopmentProgram and the further investment in the Federal lending agency that has a focus onNorthern Australia.https://www.minister.industry.gov.au/ (“Budget Boost For Northern Australia and CriticalMinerals”).These initiatives include: - An additional $2 billion for the Government’s lending agency to support theGovernment’s regional and Northern Australia agendas. - $50.5 million over four years to establish the Australian Critical MineralsResearch and Development Hub. - $50.1 million over three years to the Critical Minerals Development Programfor competitive grants to support early and mid-stage critical minerals projects.It is anticipated that Castile will be eligible to apply for Federal government grants and loansat the completion of this study. However, there is no certainty that Castile will be therecipient of any loans or grants."
Funding wise:
"Castile has undertaken informal, preliminary discussions with a number of different financial institutions that provide funding for resource projects through debt, equity, metal prepayments, offtake agreements and metal streaming. Several of these financial institutions have expressed interest in being involved in the development funding of the Rover 1 Project. However, there is no certainty that Castile will be able to obtain funding for the project as or when it is required."
Reiterating the board had tipped in another $1m of their own money earlier this year. Strong vote of confidence.
Looking forward to seeing how the rest of the story unfolds.
CST Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
