From a strategic perspective, there are so many things lining up...

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TheGekko

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07/12/23

14:40

Post #: 71328252
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Originally posted by WhatsTheTip: ↑

Well my gut feeling is GT1 were having a lot of interesting discussions and the people they were talking to just kept on saying, yep we are interested but come back when you have a mining licence and at least a scoping study (PEA). They kept on saying that projects in Canada take too long in permitting for a commitment to be made before the mining licence is sorted. My guess is GT1 heard that numerous times, quite possibly in the dozen plus range. They may have signed NDA's to progress the discussions, but with Canada's history around permitting, no-one was biting until they had the mining licence.

GT1's original plan would have mirrored past projects in Oz. Define some resource. Work on permits. Release some met work. Release a scoping study. Improve the resource size. Somewhere there would be a DFS (or 2) some offtakes and various capital raising to keep the project progressing. The tanking share price (and unfortunately there is no better word for it) basically stuffed the idea of something like a Canaccord capital raise at any half-way acceptable price to key shareholders. The likes of AMCI wouldn't accept the dilution that would come from that option. Their acceptable dilution involved getting LG on at above market price!!

While GT1 knew broadly what the financials would look like with the previously planned PEA release, they hit the issue they didn't have enough defined resource, even if they infill drilled all the Seymour inferred to indicated. They hatched a new plan.

The new plan was to define enough indicated resource to get the PEA to work. Root Bay allowed that to come together although the original sub-variant was to find something else at Seymour or possibly infill McCombe. The Root Bay Indicated resource being on the critical path to a PEA release is why that drilling and JORC moved so quickly from discovery to indicated. Rather than hope the PEA/Mining licence would boost the share price and then allow a discounted capital raise, GT1 decided to do it the other way around. The ordinary elements of the PEA were pre-released. Everyone was expecting them anyway. Key bits were timed to drop during a PEA release trading halt that would align with the mining licence receipt. GT1 would then test the word of these other parties that said bring me a PEA and mining licence.

If this desktop theory from the other side of the world to Canada is correct, those previously engaged with parties are now being approached around investing some significant dollars into GT1. If this theory is correct, there will not be Canaccord or similar term sheets doing the rounds because it will all be strategic investor placements.

I hope I'm right. This could look pretty silly if someone fairly quickly starts to post details about the term sheet for a generic capital raise. This could look pretty silly if the raise price is low and it doesn't bring on a new or increased strategic investment.

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From a strategic perspective, there are so many things lining up for this company that no doubt, there will be or are, plenty of suitors looking to get involved one way or the other. 2024 and 2025 are going to be very exciting.

GT1 Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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