CRITICAL RESOURCES LIMITED (ASX:CRR) - Next Chapter for 4CE - $50M+ Company, page-19 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by 952i ↑

This deal is lucrative in three facets imo. The location, the partners, the terms of acquisition. I’ll be breaking it up into those three sections, each one warrants detail.

Terms of Acquisition:

The structure of the deal is top tier, the fact JB managed to get something on such good terms is incredible.
Post-Acquisition Capital Structure:
412,686,704 SOI
Including 15M Options 0.032
Including 1.5M Options 0.048
Including 67.5M Shares for Kitotolo Vend
Including shares for todays CR/Vend.

@0.09:
MC = $37M
Assets = $760K Cash, $675K Investments, $555K Options Conversion, $3M Raise, $1M modest assumption of Mt. Adrah/Halls Peak.
Total Current Assets = $6M
EV = $31M

This is the crazy part: Minimal dilution, no free option, no corporate fees, no commission, no discount to price before it was halted. I have never seen a raise done that tight like that.

Another thing I like about the terms is the fact that we get to use their drill rigs, excavators and resources for all our exploration. Even though $2M has been committed to exploration already a bunch of the logistics is covered allowing us to do much deeper exploring with saved funds.

Also have a look at the milestones this time around. For Kiambi and Kitotolo it was 150,000 tonnes lithium, this time the first milestone is 66% bigger than that, upto 10X larger milestones here, that’s a small hint on the quality of this project.

To make things better Evan Cranston picked some up in the raise. The director of NCZ is now also involved here. Same guy behind DRG and HEG. No small player and I wonder if his good mate Tolga or affiliates grabbed any. Regardless, having Evan put his money here is a huge thumb up from me, one of the best in the mining game.

Partners:

Who are MMR SPRL:

They also Fund the same charity as MRI and Kemet, so they're affiliated with some of the larger guys:

A report from ITSCI who monitor supply chains provided the following figures for them:
Export Volume between Jan - October 2012:
Northern Region - 25.6mt/month of Tantalite
Southern Region - 315mt/month; Tantalite 22mt/month

As for who might be doing the DD on behalf of MMR SPRL: Same guys that found AVZ's Manono peg back in 2009. Same guys that reviewed it again in 2016.
We are one of their recent clients.

As for MMR SPRL Senior Company:
Have a look at the minerals and metals they deal in, doesn't include lithium which could be part of the reason Jason Brewer struck such a good deal. They are happy to give us the land knowing they have no interest in lithium even if it does exist in large amounts.

Location:

This is my favorite part,
Regional Geology:

First point to make is the whole region is untested for lithium. What we do know is we have open pegs, tin and tantalum production (As with AVZ) closely associated with lithium, we also have spod and 2.2% rockchips of lithium
We also lay on the same Kibara Granite formation as AVZ. This was already the case with Kitotolo but now its as close as we can get.

Manono Location:

Once again like with Kitotolo acquisition management have picked one of four places where we lie perfectly along one of the possible pegmatite extensions of AVZ.
Sample cross section also provided,
You can see how previous reports suspect a peg across that direction we lie on, and shows alluvions/exposed pegs.

We have artisanal tin tantalum miners right next to us aswell. You can see the main trend of peg extending onto Kitotolo tenement. But also the Parent granite containing Lithium, Tin and Tantalum going around the side. That will likely produce faults that merge back together with our Manono south tenement.

As for our tenement, same minerals found here as with AVZ's tenements. And was the closest available we could get to AVZ. Great stuff.

Lithium Rockchips:
The rockchips here are what sold me, previously we had hand selected a region in kitotolo and picked 25 rockchip samples. Which one assayed for over 1%. Its quite decent results compared to alot of lithium players.
Here in kanuka we picked 20 samples at random, which 20% of them showed up for more than 1% and one showed up for over 2%.

Here are some other rockchip samples to compare with: CXO, AVZ (Not rockchips but surface trenching), KSN. Its crazy but 4CE has the most superior rockchips of the lot.

And if tin mining is anything to go by, before AVZ was tested for lithium, they went off the back of the tin and tantalum production:
AVZ -

4CE -

A much richer mineral source here, only question remains is it as rich as AVZ in terms of lithium??

As for my personal disclosure, been holding this from high 1's, I sold few on the first run but loaded again in 3's and 5's and now have a very decent size here...4CE has always been a part of my portfolio since very early on of this year. As for AVZ I don't think we are even on AVZ's tier yet, so don't take my comparisons with them personal they are an entire different beast, but simply highlight the potential of the direction we can move, also allows for a case study to see chances of us having a massive deposit.
Given all of this I can expect us to easily push to $50M MC+
I plan on holding into double digits. Lets see if that becomes reality.

Cheers

Expand

Nice write-up

But don't you think 4ce is fair value now given all it's got is 4 out of 20 rock chip samples with decent grades?

I would think looking around the market peer comparisons, it is too much to expect 50+ mill market cap without any decent drill results.

In my opinion this is still rated based on AVZ nearology more than anything.

Will keep watch for now

Much wealth to holders