CXO 8.79% 8.3¢ core lithium ltd

Resource upgrade from our infill drilling program of Grants and...

  1. 2,171 Posts.
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    Resource upgrade from our infill drilling program of Grants and BP33 from December of last year. Expect a significant upgrade in the reserves available. This will increase the life of mine significantly (we really need to be firmly north of 10 years for the market to respond well) and makes us much more legally viable to sign off on binding off-takes and means we can go to finance markets saying we know we have this amount in the ground for sure, plus this suspected amount in total resource that we will continue to shore up.

    After that, we have drilling campaigns starting in Q2, this should hopefully get the markets excited.

    We know the Updated DFS will be released in Q2 and if the figures are any good, it should garner a significant amount of new attention.

    Off-takes deals. These are the big ones we really want that will get the Share Price flying. These however are mostly subject to rises in Spodumene prices and 690 USD is the previous benchmark we were using in the last DFS so we might need the price of Spod to climb another hundred USD before our partners concede on our asking price. P.S Stephen has said at today's spod prices, we could go into business now and be a viable business but he knows where the price is going and is deliberately holding out because we can lock in a much better deal.

    Finance Late Q2 - This will come either from 2 or 3 sources. Those being

    - Off-take agreements with pre-payed finance attached to them, such as the deal we did with Yahua and the deal that is eluded to with Transamine.
    - Oppies exercised at 45 cents - This would give us another 36 million dollars and the oppies would most likely be activated after the SP had been pushed north of 45 cents by a Off-take agreement going binding with Transamine.
    - International Finance markets - We could go to international lenders as money is very cheap right now to borrow. Before we could do that however we would need to prove we could pay the loans back so we would need to likely have one more off-take locked in. This is the ace up the sleeve as Stephen Biggins has mentioned on multiple occasions they have other people making offers so if we can't go binding with finance with Transamine, we could go binding with another partner, show we have the business for the years to come to the international finance markets and get the money we need to build the mine secured.

    FID - Very late Q2 or Early/mid Q3

    A FID made would almost certainly result in a last minute pile in, raising the Share price.

    Drilling results released from Q2 drilling - GOLD and Lithium - Unknown when the would be released but any good announcements which increases our total megatonnage for the Lithium or a JORC is completed for the gold will likely give us a good push upwards.

    Sale of blueys tenements - This would likely net us some very decent money and could help us move towards that target of 85 Million to get the mine underway.

    If we assume that of the 45+ million we have right now, 25 million is spent in the next 6 months on drilling and JORC for the gold, we could be looking at

    20 Million in the bank
    5 Million pledged from the NTG
    36 Million pulled in from Oppies
    The remainder being made up by either pre-payed finance from our off-take partners or international finance markets if required.

    The long term picture for the year looks really good. But the short term picture for the next month or two is pretty meh as the gears are just starting to spin up for these big milestones.



 
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