While ELM's Sintoukola project in the ROC is at a very early stage, it appears to be a relatively low cost, easy to mine resource. For this reason, it stands a reasonable chance of attracting financing by a large partner over the next 24 months (subject to drilling results and macro-economic conditions. Also, the terms of this financing, should it occur, may not be opitmal for ELM's shareholders because ELM's tiny cash balance makes it vulnerable).
This particular outbreak, which is not linked to the better known West Africa outbreak, has sadly killed 42 people so far, and is still spreading. It's epicentre is the border region with the ROC. If it spreads to the ROC, it has the potential to effectively halt all ground work on Sintoukola, and for this reason it would probably be prudent for ELM to update investors on whether or not the company has contingency plans in place. While this outbreak is ongoing, I consider it a material risk to the Sintoukola project.
K2P Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
