re: + financing the spinifex moly project +
FINANCING THE SPINIFEX MOLY PROJECT.
If the project is big enough and has strategic metals, then I can't see any problems.
China would be an eager client, I think.
The PRESENTATION mentions that the Moly Project SPINIFEX can supply 5% of the World Demand for at least 20 years. That would attract the Chinese who need big and continuous supplies.
And it would'nt be the only eager client IMHO. Others could be India, the US or Europe.
So, MOL could be in a very advantageous position and could if it wished, negotiate a position which required minimal outlays at the beginning (Anything owing to be paid from profits) thereby conserving its Share Capital as HRR is doing.
It is also possible that an accepted party would like some shares as well and this would bring in cash when it is needed in say June-Sept 2006.
A research paper was aiming at about $A350-$A400 mill for the plant. Add to that all mining machinery and other costs and one could be looking at say $A430 mill perhaps in today's dollars.
That reads like big money but if so needed, Bank Finance ought to be available and MOL can also sell their Gold project, if it had to.
Of course a BFS will be needed first.
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.
MOL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
