I've pondered this one as well. Precedents exist however for complete external funding as in the case of Lafayette Mining's Rapu Rapu gold / copper/ zinc / silver mine in the Philippines.
LAF is also a relatively small outfit - albeit with a current market cap of around $50m - but it managed to put together external funding without any massive dilution simply because the resource base was strong enough to attract the interest.
If the size of GIP's diverse resource base is confirmed by the BFS and their low extraction costs prove accurate, I don't see why attracting funds will be a major problem. After all, they already have a number of very attractive offtake deals in place for significant amounts of their annual production of Ta, tin and feldspar.
Personally, as long as the offtake contracts are secure, I would prefer the company to take on significant debt rather than pursuing the option of serious dilution.
I know that no two projects are the same but while LAF's market cap is around 5 times GIP's, its projected mine life is only about a tenth of GIP's. LAF's hedging has yet to be finalized but this is more or less a formality. This precedent suggests that small companies can develop large resources without massive shareholder dilution and it is a path that I hope GIP's management examines very closely.
I hold GIP but not LAF.
R/Gupper
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