I'm a HIO shareholder and noticed this discussion by chance.
I don't share your concerns, the $200m can be called at anytime but most likely when the share price is well north of $1 share price to reduce existing shareholder dilution. This deal allowed HIO to maintain strong negotiating leverge with potential offtakers as they are no longer desperate with cash, and can now put the hand out for mine develpment contributions. HIO ore is 70% and would be fetching ~USD$215 if they were producing now on all up costs of less than $65 delivered China.
Re the water, the borefield has plenty of saline water however if it proves to be insuffient the water can be recycled back to the mine as the slurry will be dewatered at Silver City, 80km away.
Lets hope both projects get up and I wish you guys well.
MGT Price at posting:
3.6¢ Sentiment: Buy Disclosure: Not Held
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