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Same for you CB, I trust you misread my post. I'm not saying at this time. But WHEN NC decide to develop AND takeout GGP, as you said they won't have the money to pay their share of the development, then and only then will GGP have all the choice they need because basically an investor is then investing in NC without having to pay for the SP of NC
MS
If that is directed at me apple the you misread my post.
What I meant in response to the CB post is that should GGP have to fund their part of the development cost for the mine, the 25 to 30%, I am sure there are many options to choose from when required and I don't even mean from the mining industry.
MS
We won't be swamped but another major could show interest and is possible, if only to prompt NC into action as first refusal is their right.
CB, if it is the case that NC do decide to try and buy GGP out, that would only be on the basis of knowing that there is a substantial amount of gold to mine.
By the same token, GGP could get easily funded from third party sources on the basis of these results, JV with TR1 miner, top jurisdiction, etc. How hard do you think that is. There is sooo much money trying to find an investment that GH would literally be swamped with offers.
MS
Do t we have Newcrest over a barrel? Surely they would offer to pay the initial mine costs in exchange for a % of our profits for the first few years in order to feed Telfer? If we keep 30%, that’s the same as Newcrest finding a mine at 1.4g/t (eq), if we keep 25% then it’s like a mine at 1.5g/t (eq), that’s double the grade of what is left at Telfer, and a few years down the road they will be hungry for fresh higher grade ore, and the gold price may make them even hungrier. That 5% asset value plus newcrests desperation will in my opinion pay for the mine to be built
Tis all speculation let’s just get the next piece of the jigsaw in place - if it fits the picture like we all hope it will.
I would be ok with $600m for the other 30% and let them get on with it
Speculations* not accusations =)
Shh, you’ll upset people with wild accusations like that!
IMO Capital could be raised at 4p or 5p before any other details are released later this month!
Predicted newsflow -
October
Blackhills final drill results
Fire tower final drill results
Newcrest 16+ holes drilled and results for 10, with 6 drill rigs confirmed on location
Yearly final financial and operating results
November -
Scallywag geology report signalling system larger and shallower than hav
Another last drill campaign for the year?
Capital raise at 3p for £5 million to cover drilling at 3 locations in 2020
Potential left field news -
asset sale
further JV
Institutional investor takes stake of 10%
No they didnt, NM withdrew from Earnest Giles based on initial exploration and zero drill holes. Nothing to do with Havieron whatsoever where GGP hit excellent grades in their first drill hole and has continued to return great results from drilling.
Chalk and cheese in terms of any analogy.
Of course Caterham and thanks. I have been on this journey a while and as with my kids I occasionally get the names wrong. My point still applies however.
ATB
Providing an excellent entry point when the share price dropped ;-)
(apologies to anyone who got burned)
We all know that JC meant Newcrest - Dooohhh!!!
Newmont Gold withdrew from the project in January 2018!
Do not underestimate the underlying strength in the capital markets that a continued association with Newmont if this proceeds into production, will be afforded to GGP. Whilst junior mini g companies might struggle I don't think this applies to the size of Newmont and remember where Haverion is.....one the most stable mining friendly countries in the world which significantly derisks from a lenders perspective.
Also, if we hit say 10p share price over the next few years, a 10% raise to market would raise £35 million, plus another £35million from our 5% share. Or finance, once a resource is announced by newcrest, we could easily get a loan against the promised 5% market value which may increase with the price of gold and continued resource growth over time.
I would think that GH with his experience from a financial background will have something up his sleeve to facilitate this Jerry.
There was a paragraph towards the end of the article by Proactive discussing the Numis note that said.
"Will Numis assist in those small equity raises, if and when required? Maybe. But you have to reckon that the real reason Numis is getting involved is because it foresees a big financing for Havieron down the line."
https://www.proactiveinvestors.co.uk/companies/news/901330/numiss-coverage-of-greatland-gold-is-a-harbinger-of-greater-things-to-come-901330.html
The 5% at fair market value should be a good chunk towards it - maybe he could do a deal to sacrifice a few years of our 25/30% profit to go towards the costs.
There are plenty of options available to him - I'm sure he will have something in mind.
GLA - Paddy
One thing that hasnt been discussed (and a lot of high quality thoughts have!), is assuming that we have a mine to develop, how will GGP pay for its 25/30% of the costs? Firstly I have no clue as to how much mine development would be.
Will the 5% we sell to NC pay for it all?
Will we have to sell more than 5%?
Will/could we sell FT/BH/EG etc etc?
Can we raise enough bank debt to cover the costs until production revenue rolls in?
I guess it depends on the state of the market - px of Au, availability of financing and market for other assets, but its something that will hopefully have to be addressed.
Hoping that I am not putting the cart before the horse too much....
The cost of block cave mining is about 1/10 of the correspondent cost of conventional methods. The production rates can reach 30,000 to 100,000 tons per day.
30,000 x 300 days (allow for outages) is 10 million tons. Telfer only has a capacity of 20mil per year. Maybe blackhills surface ore could feed Telfer for a few years until Havieron underground part gets built? Then they need to build another train (processing line at Telfer), or another plant...
So you're suggesting two more jv's or a buy out?
Low grade results from blackhills , scallywag ,open pit will feed telfer along wit high grade from Havieron, this is how I think its going progress.