What make you thing that they will run with MRG? I think this is...

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Undaunted

4,661 Posts.

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05/07/16

18:49

Post #: 18199441
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Originally posted by Green Bull ↑

Volume up and so is the share price.

Looks like the radar is catching it.

Massive potential here just on the Second Fortune gold (plus there's Lithium and more gold) as illustrated recently by @jaked:

*****
Why did EXC raise $ 1,500,000 when beforehand they had commitment from PYBAR to fund "everything"

Answer: Financing in the low cap exploration / early development space has improved significantly

Why allow PYBAR to fund everything , get their money back within 12 months and then pay them 45% of the ongoing profits !!?? which = 45% of approx $ 13 mil per annum.

Clearly, EXC are now able to "go alone " utilizing the Mitchell River Group ( MRG ) to organize the seed capital and the contractors to reach that point of development. MRG deserve some measure of credibility as they have already committed to parting with $ 500,000 worth of EXC shares at 4 cents....PnP did NOT and PYBAR did NOT !

With this capital raising of $ 1.5 mil, EXC will now be in a position to provide say 30% of the funding towards development , giving comfort to a financier to provide the balance of funding.

Net Result being:

(a) EXC paying maybe 12% interest per annum of the portion of funding from financier which amounts to approx say $ 600,000 total interest before full repayment of loan within by 12 months.

(b) EXC paying MRG management fees to oversee appointment and coordination of all contractors, managing the development to the point of production of gold.

(c) EXC then receiving 100% of the net profits from gold production, instead of around 50% with any PYBAR type deal.

(d) However, maybe PYBAR/PnP/ or MACMAHON or the like, may still conduct the mining operations as contractors only .... BUT under the auspices of MRG.

(e) Current Gold Price = approx AUD 1,800 per ounce
C3 cost price = approx AUD 1,200 per ounce ( incl MRG management fees )
NET PROFIT = approx AUD 600 per ounce
Production = approx 20,000 ounces per annum
EXC PROFIT = approx A$ 12,000,000 per annum

No. EXC Issued Shares = 274,962,516 ordinary shares ( ex new placement )

Earnings for each EXC share = 4.4 cents for each EXC share

PER of 5:1 = EXC share price of 22 cents

PER of 7.5:1 = EXC share price of 33 cents

PER of 10:1 = EXC share price of 44 cents

within 10 months................take your pick !... and that's just on the GOLD !!!!
IF Lithium / other Linden drilling adds some flavour and success, then so be it !

END..
*****

Cheers,

GB.

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What make you thing that they will run with MRG? I think this is the 4th deal on the project in the last year and not an ounce has seen the light of day. My money is on another deal in the next few months.

EXC Price at posting: 4.7¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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