Tembo exit options

Given the significant stake that Tembo has (~57/60%), they cannot easily get an exit by selling in the market. Its self defeating. Their only plausible exit options would be either an
1) eventual complete takeover of NZC by a major - or find a
2) non-strategic buyer for part or all of their large stake - or find a
3) strategic buyer for part or all of their large stake.
4) A slump sale at the Kalongwe project level would be troublesome as then they would be left holding stake in a cash shell. Maybe they get their monies back through a large one time dividend, but it would not be their preferred path.

As a PE fund, their holding timeframe would be 5-6 years max. So anytime before 2020/21 the exit should happen.

I reckon the best options for them are (1) and (3)...as a strategic buyer is more likely to pay up for a good asset. It also provides the easier path to a liquidity event for them ...as such an entry would by itself boost the valuation of NZC.

So their plan would be to dress up this doll over the next 2-3 years in a capital efficient way (Phase 1...+ exploratory drilling + Maybe some progress towards Phase 2). If NZC resource gets upgraded through a significant find, it becomes an easier sale as the current project maybe a bit small for a strategic's interest. A longer mine life (15-20 years) would help.

Progress on Phase 1 can help fund Phase 2, making it easier for a major to justify an investment (less capital intensive). Since NZC is already 10% of Tembo fund as posted here, their appetite for owning more of this may be limited. A constant dilution (effectively call for capital from Tembo) would not be something Tembo would prefer or wait for. So a Phase 1 and progress towards Phase 2 is the preferred option - dress up the doll to sell to a strategic before major capex of Phase 2 comes along.