ENK (Caldaq) Ready for construction US$150m of CAPEX already spent Awaiting US$350m loan for build First production c. late 2011
RML (Acoje) PFS completed DFS in progress (late 2010/early 2011) CAPEX requirement US$498m (although TCC could possibly save 15%) First production c. late 2012/early 2013
ENK had already earned 20% of their attributable stake in Acoje with remaining 20% due on completion of $10m funding for trial heap leach plant.
RML was already relying on ENK HL technology and staff to make the economic case for full scale heap leach production at Acoje - and the project partners were aiming for equal division of project
earnings on completion of development.
There will be obvious economies of scale and due to the close partnership between RML & ENK over the heap leaching processing there was always a strong possibility of the two companies merging.
In my view, the merged company will be in a better position to negotiate with the likely off-take partner (JXTC) and, as already announced, the construction and loan guarantee'er (TCC).
All shareholders will have to make up their own minds but I am of the opinion that it makes perfect sense to join forces. CPDLC
