Possible merger of Callisto and MTJV tenements/assets into a new company, page-24

I posted the following reply on the GSR forum (perhaps it may be of interest to some of you here?).


Hi Cpago,

Here is a short summary.

Our meeting yesterday was focussed on the risks and opportunties facing the international mining industry over the next decade (which were mostly already very well known to us), as well as the outlook for M&A (within the international mining industry over the next decade) and thus fine-tuning our future "mining risks portrait" for indvidual mining stocks:

These identified risks are:

1. Allocation of capital
2. Skills shortage
3. Cost contro
4. Social considerations
5. Access to infrastructure
6. Safe energy access
7. Access to capital,
8. Exchange rates
9. Prices of material extracted
10. New technology
11. Changes in regulations and laws (including taxation)
12. Sovereign risk


At this meeting (which I regularly attend), as an example, I outlined the somewhat unique situation at the MTJV, which is an existing and significant Cobalt/Nickel resource and potential mine (with PFS), which could operate from a very early stage as a highly valuable strip mine, with an additional major tier-one PGE/Nickel/Copper/Rhodium/Gold/Lithium resource and potential open-cut mine lying directly below it (as well as to the east, west and south of the very same tenement, over an area of ca. 18 kms²).

In addition, I also spoke about the major advantage that this potential MTJV strip/open-cut mine already has i.e. its nearness to an existing world-class infrastructure (road, rail, port, power grid, water, state-of-the-art high-speed communications etc.), which will immediately be able to serve the MTJV mining operations.

I also briefly mentioned the fact that the MTJV strip/open-cut mine would also benefit other businesses and other economic sectors in the area, as well as the various local communities.

Most importantly, this existing infrastructure will significantly reduce the time taken before the MTJV strip/open-cut mine can actually be delivering ore to the world market, as well as almost totally eliminating a potentially major "infrastructure development" funding requirement, which can often be a deal-breaker (huge amounts of additional time and money) in trying to develop a tier one mine.

In a nutshell, it was agreed at this meeting that the nearness to an existing world-class infrastructure will be a real "deal-maker" not a "deal-breaker" for the MTJV i.e. reduced upfront "set-up" costs, plus a much longer "mine life" = a very attractive and far higher NPV than would normally be the case.

Generally, it was agreed that mining companies should continue to experience strong demand. A notable force is likely to be the transition to a net-zero economy, which will inevitably be "metals" intensive. As this move toward cleaner technologies progresses, the metals and mining sector will obviously also have to step up to the challenge of providing the vast quantities of raw materials required for this transition. Therefore, metals and mining companies will also need to grow faster and more cleanly than ever before. Against this backdrop, the future for a potential MTJV mine looks very rosy indeed.

With regard specifically to the M&A aspect (which was what this meeting was primarily about), the world is obviously going to need a lot more "metal" commodities. We therefore anticipate that there will be a rapid move towards selected "metal" commodities (which is actually already well underway). We thus expect that there will also be a major boost in M&A and asset diversification.

Put simply, existing miners (IGO?) will be urgently looking for attractive opportunities to acquire assets with access to these "metal" commodities where there is already increasingly growing demand.

If you would like to comment on any of the above topics please feel free to do so.

Best regards.