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I see this as a positive sign that they are looking at production and possibly the resource expansion and development. What do people here think?
If it’s LB then they will take 100% offtake and I don’t see this event as that kind of meeting space (not really the way offtake deals get done at these types of event either in my experience) I see this as positive though that they are looking for the next level of investor, funds etc to grow the business.
I wouldn’t read too much into it. It’s common for small explorers/miners to attend these things. It raises awareness and helps builds contacts/connections. There’s like 80 companies registered or something..
CMET needs to close the deal with SR or LB. If neither company concludes a deal, then clearly something isn't right in the background. We don't want to go through another round of funding discussions with new parties because that will likely delay everything by another 6 months.
Hopefully the existing parties will come through and sign. Either way, CMET will need to update the market next week?
CMET will have many of these corporate types on speed dial. I can't imagine it has anything to do with the deal. We are already 5 months late on the original deadline for the JV with LB. Another similar delay would be unexpected and ridiculous.
Important point is the resource is tiny in comparison to many mineral sands projects and simply won't attract interest from the likes of Kenmare/Rio with the current JORC.
Potential issues with LB & Sheffield:
> LB may want everything but at unattractive terms
> Sheffield may justt not be in a position to provide that amount of finance on their own to secure the deal. it's one thing to aquire 10-14% of a company with this market cap quite another to stump up $81m in financing.
Hopefully will be resolved, but as I said it's not done until it's signed, and JV/offtake contracts can take forever with lawyers/tax consultants arguing clause by clause.
The final JORC should be an order of magnitude greater than what's currently on paper. A corrupt SL official tried to steal our MLs remember?
Re Funding: RNS 12/05/22
"· The staged development approach means that the funding requirement is $37.3m until the Project is self-funding compared to the total development capex of $81m"
In the Crux interview (@24:35), GM also refers to other opportunities in Sri Lanka, but recognises the current project needs to be progressed. Taking a very positive view, perhaps his attendance at the conference is being used to showcase the company's capabilities and opportunities in Sri Lanka.
Without doubt, there are some uncertainties, but this could also be a very significant opportunity. The resource is there, and the outcome of the impending drilling campaign should be positive.
The big boys don't sign deals on hopes m dreams, they need defined JORC deposits - I'm not disagreeing the JORC should increase exponentially going forward, but as I've been saying for years like the preverbal broken record, they need to drill/explore more, then you can expand the resource.
I know they've finally put those plans into actions and I eagerly await the results. As I'm sure we all do.
Whilst I don’t disagree the resource should (and will) be expanded, I think LB Group might be a big enough “big boy” for us 😆
@smkr lol, very true.
BUT it would appear CMET board did not like the terms presented last year. (pure conjecture on my part)
Nicely summarised
https://www.weare121.com/121mininginvestment-london/capital-metals/
Indeed a very good summary and clearly a highly prospective investment with low risk and plenty of upside.
Nice bit of buying. And Bluee...
Yes, nice bit of Friday morning action. I wonder if a few have read through the 121 review and seen the potential here.
Have a feeling it's probably speculative short term longs coming in ahead of JV/offtake announcement, in the near future...whatever date that may be.
Let's see what the volume looks like at the end of the day.
Some lovely buys today. Let’s hope for the news we’ve all been dreaming of early next week.