Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks Waynexx. It's a fairly tiny project though - R2.1b - seems like a perhaps 70k oz/annum project. % down to 40% after 260k oz delivered.
Not many examples that match the Solg position, but below was a streaming gold deal for 2.1b in 2019.
Giving away 70% of gold production until the target ounces have been delivered, then the percentage drops.
https://www.google.com/amp/s/www.businesslive.co.za/amp/bd/companies/mining/2019-10-16-royal-bafokeng-platinum-secures-r21bn-in-cash-streaming-agreement/
*aren't many examples
No examples to offer up - maybe others can chip in? But I understand that stream financing is a relatively new phenomenum so perhaps there are many examples out there. I can't see NM and his team spending nearly a year thrashing out an offtake/streaming/smelters deal for $2.1b for say 25% of Alpala to then give away 30-40% of SOLG for the remaining $400-700m - it would make zero sense.
My autocorrect always changes were to we’re. Drives me nuts.
Miagi, agree. We probably only need one really good drill hit, but very soon. We’re that to happen, and the SP move to reflect it, it puts a stop to the risk of a low value takeout, and assuming SP was near 40p, I for one would have no issues with a further equity raise to fund the remaining drill programme. It’s only sub value equity raises that will cripple us.
CD, I understand that your proposition also carries with it a significant reduction in risk to SOLG, which I should have mentioned in my post there, because it has a good deal of value too.
NM has mentioned several times in recent presentations/webinars that they have high level interest (on what I presume are terms acceptable to NM) for just over $2b in offtakes and streaming. Without CGP that only leaves $400m to find - frankly with the gold price where it is and copper where it is going, I imagine there will be players out there queuing up for that final $400m - he may have to accept slightly worse terms for it, then again he may not...(e.g. he could go back to FN and say yes you've put in $1b, we've got an offer from such and such for the last $400m but the terms are just off optimum- do you want in for another $400m for say 6%, on top of your $1b for 10%?). It's the size of the gold pile, the gold price and the quality of the concentrate that have the smelters, offtakers and streamers queuing up around the block.
Agree that $40m will only fund a 12 month drill programme. Disagree on your drill estimates. They won't be going beyond 1km per scout drill unless they've hit another Alpala hole 5. I would imagine, based on past years, that we can get 60-70km of drilling out of that money. All we need is one serious hit (and we could get multiple hits on different prospects) to send the share price into orbit - raising a bit of equity for more drilling at 50p+ isn't going to bother me in the slightest.
CD, interesting proposition there (your 8:50 post). Basically give 60% of Alpala to BHP leaving SOLG with 25%. If SOLG were to do that their share of the CAPEX would be reduced to only $700m - add in the $200m "rebate" and you're saying give away 60% of Alpala for $900m in essence. Doesn't look like such a good deal when compared to giving away 1.5% to FN for $150m (or 9% for $900m pro-rata). I'd say if NM can pull off these streaming deals then we shareholders are going to be sitting pretty - BHP are going to have to shell out a whole lot more than $1 billion. The gold price flying, our gold rich core, copper looking strong however the world economy pans out (either a bucket load of stimulus backed construction to get the jobs market going, or a natural bounce back or a combo of the two).
Earthling
Welcome back
Hope things are ok with family.
atb
BN.c
Plenty of 50k chunks being taken here today
Colonel...that's the best and soundest post ~I've read here in a long time...keep up the good work...I hang on your every word...
Good morning, just looking at tax regime in Ecuador. Taxes are more than 25% for selling Alpala. But the interesting point, seems to be the tax relief, we can attract as a company for developing Alpala. It's a long read, and you have to keep jumping about, to find other information. But I believe, it's not just the tax payable, if we sell Alpala, but all the tax relief, we have had up till now, that would need to be repaid with interest. If someone, who understands these things, would care to comment or correct me, please do. I am looking at the Deloitte tax papers on the country of Ecuador.
As both a defensive strategy and a means to delivering shareholder value, selling Alpala makes a huge amount of sense, but NM simply doesn't see it that way. I wonder how much Citi how far pursued that argument? They will certainly have discussed it.
yes I agree Colonel.
pricing us at 20p clearly is not convinced yet re the other projects.
IMO until we get funding for Alpala and permission to mine, I think they will remain sceptical.
I do believe this will come good, obviously time will prove one way or the other whether we are going to become an emerging major gold-copper play in Ecuador.
The market still needs convincing, clearly its been shown already these news releases such as todays have little impact on our SP.
We need to crack on with getting the first one over the finishing line before the market will reward us for details on the projects.
Surely a sale of the asset would then allow us to repeat the process on the many other targets.
When the majors feel it is de risked sufficiently I am confident the bids will come.