metro, funding is a consideration. I have rationalised it this...

metro, funding is a consideration. I have rationalised it this way;

1. They have around $4M in the bank.
2. Drilling on the three sites is complete enough to get to a "economical or workeable" resource definition. It should get somewhere between 300mt - 500mt JORC (excl Moorlands site).
4. Next targets do not require that much money, i.e. consultants & brokers reports, and signing deals for product sales. I think this may only cost $1-2M including salaries.

The bid thing in the loop here is funding or partnering for the plant which is anywhere from $1B to $2B for start up then increasing the plant size/capacity as they start getting the lignite out.

It would be smart to go minimal sized plant bassed on an economical but smaller capacity and then grow profitably (simple smart business moove).

My research suggests that even a 15,000 bpd plant is economical for 25 years on a low resource (under 300mt i think).

So.... the question of capex & partnering is more the key, which suggests to me that whilst funding is likely to be difficult, a buy out or buy in is more likely securing a partners position to capitalise on the project as it develops, and credit fears are resolved.

Just my thoughts anyway. We will know more as the news progresses as it appears that things are moving in negotiations and consultant reports & testing, as outlined in their forward programs.