Monday, page-2

If this goes where i think its going then i will definately shout the bar
Mike 999 says we raising $8 mil @ 9 cents. Has a friend or is a sophisticated investor himself i assume with access to term sheet. Any other info Mike ??
This will definately be a placement to sophisticated investors as money available immediately and then another $10 mil in early Jan
The DFS is fully funded and entirely in managements hands. Stated previously DFS December quarter then qualified that stating DFS in December. The money is there and the metrics are robust so i reckon this is a done deal. Big step to derisk the project and help get the offtake partener(s) on board but probably wont impact a lot on SP. As we all know the binding offtake agreement is the big one
To get the offtake done we need SPG The plant has been commissioned but now need to crank it up and get the SPG to the offtake guys. Remember this is a new process (thermal) so will need a bit of time and a bucket of money thrown at it to get it right. The stuff then must be shipped to offtake partners for "detailed due dilligence"( more money) and company execs i assume will have ongoing meetings with offtake partners ( more money )
Previously stated production target of 2018 means we will have to start now. Clear overburden, build accomadation and offices build roads and site prep for processing plant ( another bucketload of money)
There will be ongoing drilling to support offtake negotiations ( more money) and general running costs.
Yes we need the $8 mil now and the $10 mil in January. Raising cash through options exercise is a walk up start and there is no way they will pass up that opportunity
In the Morgans research note we have a 80% risked NPV of 19 / 22 cents and unrisked NPV of 95 / 110 cents. With the DFS in the bag and an offtake before options exercise project is significantly derisked. A share price of 30 / 40 cents would give us a market cap of around $95 / $125 mil
Kibaran resources have offtake in place with a resource and production target around a third of ours and have significantly higher opex and lower grade. There market cap is $50 mil !!! Pretty simple maths really
Of course there is risk ( just ask BHP) in any mining venture. If you want no risk put your money in the bank
As stated in previous post we will need a bucket load of money because we are going mining
Of course i could be completely wrong hehe