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Perhaps he attender the Kiran Morzaria school of business !
I'm still pinching myself that BCN would spend good money on Zinnwald and then actually pay a nobody, micro-cap exploration co to take it off their hands in exchange for 44% of the nobody outfit.
I always considered the Ganfeng / Sonora deal as being very generous to Ganfeng. Therefore I'm not surprised that Secker should follow it up with another shocker of a deal.
250 Year life of mine.
I've always thought this means they can easily scale this up to to a much larger facility once the money starts flowing in.
After the first plant its surely like Tesla Gigafactories. Just build and larger one and produce more. They have the land. They have power from Texas. Water can be recycled.
Maybe I've played too many games.
Remember the payback for the build is four years. And once its going finance for expansion will be low risk.
Is the intention to get into production then scale up? There seems little point in the much quoted 250 year mine life when lithium batteries will no doubt be superseded in a generation
I don’t think it does really, nor the giving away of the 2% royalty for a mighty £2m but the upside is that BCN is back to a pure play in Sonora and really that prize is more than big enough.
In other words it’s an odd deal but ultimately no one will care if they finally get their proverbial finger out and crack on with getting Sonora financed and built!
I thought they was some commitment or option to buy the other 50% of Zinwald from the Liquidators of Solarworld.
BCN don't want to put more money this way as Sonora needs to be focus of any fund raising. Its a much bigger resource shovel ready - 200 year LIfe of mine. BCN NPV 1.25 Billion vs 400+ Million for Zinwald 30 Year Life of mine.
I can only assume that Eris have backers willing to fund the buyout the other 50% of Zinwald from Solarworld and bring this into production. If so its a good deal. If not its a bad deal as it doesn't solve the problem, or bring any money in.
I just wonder how much BCN have poured into buying Zinwald and producing the feasibility study. I though it was a lot.
IMHO
Jeez and you have been invested here almost as long as me. Lol
The only thing I can think of smjlufc is that someone is eyeing up BCN and they are not interested in Zinnwold, so it had to be dumped at any cost.. So Erris were right place, right time...
Never known anything like it, I'll give you this asset, it will be your only asset, I'll also give you £1.3 million and all I want is 44% of your company for the deal! That's some negotiation..
Please, can anyone explain how swapping 50% of Zinnwald for 44.3% of 50% of it makes any sense. Erris seems to have no other viable assets ?