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A lot of ii will have a minimum mcsp for companies they can invest in.
£100m is the most common lower limit.
So if/when this eventually gets to c13p you may see activity on the ii front, but doubtfully before.
With regards to Creswick , it would take £20-30m to fully prove up the full 7km DMS that we currently have under license (more if we get the extensions)
Personally , if we get a 25%+ free ride on a JV for this I would be very happy.
Thats an interesting take on things Trek. Its no hidden secret that Bailleston seems to be the crown jewel in the portfolio. It has been drilled in 3-4 different locations and come up trumps each time with gold. Creating and financing a resource to take this to production is the best way to create shareholder value long term.
Its just how much cash could you really squeeze out of a JV partner for Creswick? Only 300m drilled, the JV partner would still be taking on a sizeable risk. Personally from its surrounding area, its characteristics and history, id like ECR to move forward with an exploration 30%-40% stake in Creswick and get to work straight away.
Depending on the deal, the JV partner may have to spend up $5-10 million first over a set period of 3/4/5 years. Our 30% here long term imo will add hundreds of millions to the market cap
But its all about balance, and if thats the case, CB will have to come to the market to finance Bailleston and Tambo
Dilution is inevitable. If we’re fortunate to be sitting on 20-30p in 12 months time, they could come to market for example and issue 200,000 million shares at a price of 15p. Generating £30 million, I’m not sure exactly how much it would cost to take Bailleston to production, but these kind of options could greatly benefit ECR moving forward. And like you mention, getting the core processed at Fosterville could keep costs down a lot.
The video somebody posted here recently, 6 factors to look for in the early exploration sector. Infrastructure, are there any existing mills in the surrounding area to help process the core? Tick
Hi lakhman1
There are thresholds for insti investments determined in part by mcap. We are really micro, we don’t even make the small cap entry at 42.3m. See a Samantha’s predictor.
http://www.stockchallenge.co.uk/ftse.php
Now flip to RNS 25th Jan 21...
“Novum are to undertake broker research on ECR Minerals plc, with a particular focus on enhancing market awareness of the Company, notably in the institutional investor community.”
Our 3% threshold holdings are ALL PI from the nominee accounts like interactive investor, AG bell, HL etc
Many think the warrant holders are insti’s, apart from Shenyang, who don’t really qualify as an insti, it’s mostly HNW individuals. It’s how it works. You register with a broker, they invite you to a funding. Then you pick the investments you like and get warrants.
There is never a guarantee that warrants will be in the money. Those early investors deserve a payday IF it comes off! Many investments DONT! Hence, if you hold shares and your warrants come in the money, many, not all will sell to get a free carry. You also have to weigh up that they may be underwater on other placings so have to net out on winners.
So ‘will we get insti’s?’
Having cogitated my humble opinion is also no, not just yet!
I think CB had a frank discussion with Novum who undoubtedly have a client list. The fact that ECR are funded is a game changer but even with the best assays it’s the route to finance and profit that they will want to see.
We may see an insti investment after a JV. A JV, changes everything. It’s a proportional shared risk!
So imo give a big % of Creswick away for cash + decent royalties. Add that to the Fosterville license royalties, sell Philippines and Argentina. Do an off take agreement for our ore with Kirkland Gold to truck it to Fosterville for processing. Raise to finance our Balieston mine while bringing on Tambo.
A pathway along those lines differentiates us from just another small cap miner. It’s a timebound route to profit which maybe enough to attract serious investment or likely a bid.
Usual caveats
Trek
Hi lakhman1
I think somebody else touched upon this recently. May have been Trek, but possibly somebody else. At the minute I can’t see the institutional investments flood in. A sub £30 million m/cap I don’t think is something they’d be eyeing up.
The way they’re run and always have been, they buy into facts, they buy into production and hard data. They can’t go in deep based on pure speculation alone. From what I can see, and others on here, all of the fundamentals are nicely in place. CB is slowly transforming this company and taking it into the direction it’s long awaited for. It’s all about risk reward at the minute, getting in at these levels can be and I think will be life changing to many of us. Once talks at the end of 2021/start of 2022 Creep in about production and Creswick is at advanced point, you’ll start to see some big buys come in
That’s just my take on it, but once these assays start filtering through soon, you’ll start to leave behind those investors only after a quick flip and begin to catch the interest of potential new LTHs
Hi Trek/ AG enjoying your posts on here, do you think any more large institutions may buy in here, before the race really gets going.