The Directors of CNQ have internally negotiated a deal with Mits without incurring hundreds of thousands of dollars in Layers fees. Mits have also picked up the tab for Due Diligence and it seems a lot of the plant design.
It seems to me these hands on Directors have been proactive utilizing there combined expertise to achieve this result.
They deserve to be paid and most importantly they have so much confidence in the project they are accepting shares at $0.12 instead of Cash.
Please remember we only have App 300Million shares on issue and a 10% capital raising is being suggested.
The share price has increased from $0.05 in April to $0.135 with next to no dilution and I am hopeful of seeing well in excess of $0.25 when stage when the Low Grade Stockpile Processing is operational on or before Q1 2016. (Refer Page 9 Annual Report 30 Sept Announcement).
Please remember the Mits contract also allows CNQ to negotiate with other parties to fund the “Hard Rock Processing” and considering the delays maybe this announcement is close.
Considering the small cap market is out of favor we are so luck to be in Tungsten.
Please DYOR.
CNQ Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
