A lot of loose hands. Christmas resolution. Get rid of stocks that haven't performed. Or "at last we are back in the black. Let's get out when we can.
The Vale deal is two parts. (1) we get approx $18M to prove up the resource, and get more pellets made. (2) At the end of this Vale can walk or sign up to fund up to Decision To Mine (DTM). In the former they get no equity. In the latter they get 30% equity with the commitment to spend $180M and topped up to 75% when the $180M is spent and a DTM is made.
So initially 2 cents will be added plus a major player interested factor. This latter will be determined by the market. 8 -10 cents sounds right.
If they go to stage 2 then Vale are saying that the project is worth $700M. Or 70 cents a share. If they go to a DTM a DFS will determine the value of the project and the share value accordingly.
There is a risk that Vale spends and then walks.
A lot of loose hands. Christmas resolution. Get rid of stocks...
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