Hi 3steps,
Thanks.
Sounds like you have spent some interesting times in the field. I remember when CRA discovered their kimberlites/diamonds in the North West of Oz. It was said there cannot be a market for pink diamonds, they're only any good for industrial use. Well CRA proved that to be bunkum. My wife, when she passes a jewellers (re. recent cruise) swoons at their lustre, and runs for the hills when she sees the prices.
Some more general notes:
From my standpoint, I find that both sides of the argument for Lepidico (LPD) have valid points, and those who are on the' positive side' there are risks; and those with 'negatives' they too have risk -that of missing out should LPD succeed.
However, for the 'positives', their risks are: that of the cost of investing in a start-up company, and LPD is precisely that, the fatality of start-ups is very high.
LPD has taken an invention, worked on it to provide L-Max, S-Max and LOH-Max, discovered that it also provides some healthy byproducts such as Caesium and Rubidium. The risk side is whether they can synchronise the project with the feed-stock, ie get the mining operation and the logistics to deliver to KIZAD (the now prospective site for P1P). The initial outlay for the plant build will increase due to the fact that an acid plant build is required, the cost could be kept low-ball as the build will probably be pre-fabricated modular in nature.
The future funding side is still an unknown to SH, what we know is that it will be some form of: a) offtake agreement. Plus, b) debt finance. Plus c) equity issue [placement or/and rights issue. And may involve a cornerstone investor. Some mix of the these or innovative financial arrangement (not, lets hope a T/O at these low prices).
Given that we have come so far, and management have guided us to this point (albeit with some unexpected turns and missed deadlines - these are to be expected given the degree of uncertainty in building any new business), my view is that management deserve the right to complete the task and I am prepared to back them by my continued support- beit a much smaller than some stakes investors have made. It may be il-fated, that's my risk I'm accepting, but should it succeed then it will be worth it. What I do know is it is not a short term investment and two years more at least it will likely take to be operating optimally.
With regard to the investigation of the Kiribib prospect for Gold, to me, this at first blush it sounded astonishing. However, when one gives it some thought it becomes more logical. 1. The company knows that gold has been found on leases nearby. 2. They are drilling their leases in Kiribib to upgrade their resource from inferred to indicated, then to measured and finally probable and proved; therefore why not examine the drill cores for gold as well, Obviously! eh.
If LPD does get decent shows of gold, they don't have to be side-track from lithium end, the gold right is sold to a gold explorer who pays to develop the lease and if comercial will also pay royalties. The upfront payment can offset some of the cost of the lithium project.
Cheers.
PS., Don't take this as an upramp, it is just my viewpoint and opinion and is no better or worse than others. My glasses may be rose tinted.
GLTA
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