Its clear now why they havent been able to secure the required finance (40 odd million), I will assume they needed more than 2 years of ore sales negotiated...i will also assume they have a fund chosen and are just finalising the T & C's with this being the one major requirement. Hopefully this the case and can be advised with the off take agreement announcement.
The recent 6 million injection (which the Hong Kong company wouldnt have invested at a 20% premium without some comfort this is definitely going to happen) to continue with production requirements and then the option money and balance of the finance to finalise the large CAPEX requirements to extract the DSO...they mentioned before that its only a matter of wheeling the production equipment to site and start digging (In simple terms), so the finance isnt needed until the same time as the option money, i think it will work out nicely as they can see how much option money is received and then finalise the balance funds to keep the debt to a minimum.
There are obviously still a lot of sceptics, due to the unorthodox methods, thats why we are not seeing the share price explode. I Dont think people understand that this a unique product DSO which allows for a relatively low CAPEX. Ian has done well securing the relevant people and experience to make this happen and i am happy to keep topping up at these prices. I bought these originally through the IPO back in 06 for a $1 with an initial MC of 40million, with this nearly going into production with minimal debt how can we have a MC of only approx 50million (how times have changed since the initial GFC).
Splitupalip, are you still onboard?
TYX Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
