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Sheffield got it
Yes and I guess most investors preferred partner. Bring on the end of the month.
Guesses on SP movement today?? think it will go??
CMET arent leaky. hahaha thats why we had 2.5M shares traded yesterday.
So at least we seem to have a preferred partner - but will have to wait until end of May before concluded - hopefully it will be.
Am more comfortable with a non-Chinese partner if I'm honest looking at the geopolitical situation and possible future scenarios. My niggling concern is whether or how Sheffield has the ability/going to raise the funds to make this happen - £81m is a serious chunk of changed for them - so I'm interested to see the final terms and if in fact it goes as far as we've been previously told.
SO I'm tentatively happy, but we're still not done.
At least we're in another exclusive period...
I’m happy with Sheffield. They’ve seemed far more proactive, and of course probably down to Bruce Griffin. Bring on production
https://www.australianmining.com.au/first-bulk-thunderbird-shipment-takes-flight/
They don't need $81m though
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"
I haven't seen anything that would change the position, although the actual requirements may have changed since 2022.
PaulFG
Great news 👏
You have any idea why they have to continue with LB
"The Company will remain in discussions with LB Group regarding potential offtake arrangements."
Yes that's what I mean - have far down the development road are we now going on a fully-funded basis. Last year we saw they were pushing for the full development with LB, giving up a lot to get it - clearly wasn't palatable.
SO now what are the terms for this proposal - I agree it's unlikely to be the $81m as I just don't think Sheff can afford to do that - so now we're giving up 50% to go how far down that road?
I don't want to prejudge until we know the exact details but obviously as dose of commercial realism has hit CMET board since the MF days .
Look I don't think this is bad news, I just don't know how good it is...Happy though at least we have an RNS and clarification.
XEL: LB offtake - yes that's good to see, afterall CMET still need to sell their 50% share of production
I guess an off take agreement would support raising finance for the project.
A mineral sands producer, gets in pole position to take a small mineral sands explorer into production, after buying up to (potentially with option) 14% of CMET .. installed their main guy onto our board, and Paul is unsure if it’s good news .. the mind boggles.
Great news and I had a feeling it would be Sheffield. This should rise in anticipation of the deal being concluded in two weeks time. I'm sure an offtake agreement will be signed with LB Group, which would really top things of.
Time to top up here as this should start to re-rate from its current 5p. GLA
Hey Paul,
Talking of the Geo-political arena......perhaps a "chinese" partner was never going to be green lighted given the current thought process of the west (particularly USA) on resource grabs by the CCP.
Ive spoken of this before and it was discussed in the Senate and Congress. We will never know what happens behind the scenes between governments but we can take a guess at the pressures or persuasive nature of some officials to other decision makers. Perhaps these governments also assist with any finance (definitely happens) that is needed to make the "correct" decision. What is $80M ish to these guys..................its pocket change.
I do think it’s really good news but I also get Paul’s view too.. it’s not quite the here is the funding to production message (as yet) financing now more likely to be higher debt I’m guessing with Sheffield balance sheet - not to say this is bad.. but we will need to see more details. Hopefully gradual rises from now on with progress but with the markets these days who knows!
Sheffield clearly had the best terms. Best news for the SP going forwards imo
As at 31 March 2024, Sheffield held cash reserves of approximately $20.4m. They already have a producing mineral sands mine and are clearly on a process of expansion and growth. They are also in the process of doing a similar deal with another mineral sands project in Brazil. I don't think £30 million will be an issue for them at all.
Market seems to like it. bring on production
I've been here since 20p days.
This is great news. Really confident that this will get signed.
CMET don't need to fund 50%. This was explained in the interview. This deal should give CMET a free carry into production. Sheffield are paying the monies required to get the project to self funding stage. For this they get 50%.
CMET should be fully funded to production, and will also have funds coming in from Sheffield when they up their stake.
@Andoman yes you're correct there is currently a world war raging for critical metals with the west finally waking up to the fact that China has been buying up everything globally and should CHina continue to impose export restrictions on more metals the West is very vulernable - you can see retaliatory action coming - already the USA has imposed Chinese import bans from 2026 (?) on tungsten for military use.
re funding to production is we probably have secured that, BUT the value-added is the funding that would have come after that with the actual separation of the various products within the mineral sands (the proposed development at Oluvil Port would have done that - but Greg seems to have put a whole question mark over the use of that port now.
Also I think SL has stated that it wants to see those processes conducted incountry in the future - so we will have to deal with that at some stage.
Look it's good news, for the sake of clarity, not done yet though and I think the economics all have to be revisited now in light of the available funding. Hopefully, we might see further news re offtake which will further remove uncertainty.
Great news the financing is almost sorted hopefully with another rns in the next couple of weeks adding more detail. Still not clear from the new presentation if it's now nearly 2 years to production from the original 12 months previously indicated
6. Conclude project finance - up to 9 months 7. Commence construction - 12 months 8. Production