SKI Pre-payment, page-6

No distinct difference really from the ' HUGE ' streaming deal Vale did with Wheaton and Cobalt 27 ( Now Nickel 28 ) back in July 2018. Where it differ's to AUZ's project aspirations , is that SKI who has undertaken a ' Binding ' offt-take for 100% for the first 7 years. Should they then commit to the project by expressing this in a ' staggered ' pre-payments schedule - This would then allow perhaps AUZ to negotiate on a further deal be it streamed or agreed structured ' prepayments for the balance of the ' uncommitted ' Nickel and Cobalt from SCONI's increased LOM.

I had brought this up before on the AUZ forum at least a couple of times previously so won't rehash previous posts . Suffice to say that Pala Investment took over the Canadian based Cobalt 27 , and in the process of ' stripping ' out the Steaming Deal with Vale , they created another Company called Nickel 28.

So yes I'm going to have to disagree with those who are suggesting that a mere whiff and signing of the intent or otherwise of an agreed ' Prepayments ' schedule for AUZ's Nickel and Cobalt and is not going to at least underpin the further appreciation of the SP from these levels. And of course there will be selling into this news ...... However Net - Net , the Investors who will be wanting to get ' Set ' or accumulate should outweigh the Retail Investor's looking to exit on the fresh ' Highs '

Here is a summary of some key components of the Vale streaming deal from back in June 2018 :-

(Reuters) - Brazil’s Vale on Monday unveiled a $690 million financing to expand a Canadian nickel mine, agreeing to sell unmined cobalt from Voisey’s Bay as a booming electric vehicle market propels demand for the critical battery ingredient.

Vale said it would sell cobalt mined after 2021 as a by-product from the mine in Canada’s northern Labrador region to Wheaton Precious Metals Corp and Cobalt 27 Capital Corp in a so-called stream financing deal.

The transaction is the world’s biggest cobalt stream to date, a form of alternative financing that allows an investor to make an upfront payment in exchange for future production at a discounted price.

Reuters reported in January that Vale was seeking to sell un-mined cobalt worth hundreds of millions of dollars from Voisey’s Bay as expectations mount that the metal is headed for a shortage.

“By unlocking the value of the cobalt by-product at Voisey’s Bay through this streaming deal, Vale has found a way to resume substantive work on the underground project,” Eduardo Bartolomeo, Vale’s base metals executive officer, said in a statement.

The financing will help Vale fund the $1.7 billion underground expansion of Voisey’s Bay and its associated infrastructure. The premier of Newfoundland and Labrador said on Monday that construction of the underground mine will start this summer after Vale last year slowed development due to weak nickel prices and a company-wide assets review.

Vancouver-based Wheaton will pay $390 million and Toronto-based Cobalt 27 $300 million upfront in cash for a combined 75 percent of future cobalt from Voisey’s Bay. They will also pay on average 20 percent of cobalt prices on delivery of the metal.