Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Well worth watching it all, for those that don't have time the most import parts for me regarding realising Amapa valuation:
TLDW;
"traditionally what most people would do is they go from PFS go out to Market, raise the capital for DFS and certainly you know if our market cap was much more reflective of our asset value, that would be something we would have considered, but given where the market capitalization is the dilution to our shareholders by raising money for a DFS would have been quite punitive you know. I'm I'm a substantial with about one percent of the company so like other shareholders I don't want that dilution and look to mitigate that as much as possible.
So then we have three ways to look at develop this, our primary primary choice is to get a strategic partner / joint venture partner at the asset level in Brazil who would provide the equity in Brazil and take an equity stake in the asset in Brazil and and therefore provide enough for the DFS. That Equity partner could be of course a strategic investor from abroad which might you know have some engineer EPCM (Engineering, Procurement and Construction Management)funding associated with or have the first right of refusal of the EPCM funding so that is the engineer could construct and manage of the ventral project. so we have a data room that is open and we have several parties looking at that data. it does take time because they're going through the full PFS document and it's a financial model you know the actual PFS document is probably about about 600 pages long, but the backup engineering work is you know reams and reams of data, gigabytes of information that needs to be gone through so that is one option.
The other option is if there was a buyer out there that offered us a sensible amount associated with this asset
we would definitely consider it and could look to vend out in its entirety. The proceeds of which could be reinvested or returned to shareholders.
And the third one is would be effectively taking this asset and splitting it out into a market that would appreciate this asset for its value. That to us would certainly be the Australian stock exchange and something that we are actively looking at."
Fleet's Director of planetary geophysics Dr Gerrit Oliver commented “The data we recorded at EverGreen's Bynoe
Project was exceptional. The proximity to the coast and the nearby mining and exploration activities provided abundant
low and high frequency seismic noise, which in turn enabled us to image the subsurface down to 500m depth with high
resolution. From these results, and our earlier work at Core Lithium's BP33 pegmatite, it is becoming clear that the
method is well suited to imaging potential pegmatites in this region due to the favourable noise conditions and the
velocity contrast between the pegmatites and the host rock.”
The EverGreen survey results showed similar low velocity features as the BP33 survey occurring along strike to Core
Lithium’s Carlton and Hang Gong resources
Geophysical ANT analysis is currently underway for the remainder of the survey areas and a further report will be
made in the near term.
“the widely reported multi-year low level of transactional activity in the financial capital markets” had hit its broker division, while “weaker market conditions” hurt its wealth management arm, leading to a £1.1 million loss.
W.H. Ireland not looking so good today, they did a placing at 3p https://www.standard.co.uk/business/city-wealth-manager-wh-ireland-collapse-fca-fundraise-jobs-broker-capital-markets-b1097296.html
I think the company structure plays a part as it's no longer a pure lithium play nor a pure iron ore play, directly listing Amapa might work better or a reverse merger transaction (perhaps partly why the 55% share issuance is requested at the AGM). Otherwise selling part or all of Amapa or other assets (for a profit) and initiating a buyback programme if shares remain significantly below NAV might be best for shareholders.
I haven't decided but I would note that depending on S/P at then raising to pay of the loan it may be better to raise than allow it to convert given the terms. Of course selling EMH would probably be the better option though.
12.7 pence for reference.
Mer, I certainly expect the future to be better than the past and hopefully not too long to find out. I take three interested parties to be a positive, and the Japanese delegation that were reportedly visiting earlier in the year at the same time KM was over there.
@Mer it all hinges on the value that can be realised from Amapa the management don't control the SP and probably won't be able to say anything until a deal is concluded. Happy to have constructive discussions, you do have to consider that the macro is affecting the situation at the moment.
Http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428233571670304
no sign of the circular just yet
https://www.cadenceminerals.com/investors/general-meetings/
Yeah I’m expecting/hoping at least double as a minimum I.e $66m+ hopefully more noting that in 2007 Cliffs paid $133m for 30% with the mine needing $350m spending on it so circa $100m +/-33% is perhaps the right range. Dare to dream….
https://www.clevelandcliffs.com/news/news-releases/detail/199/cleveland-cliffs-closes-on-transaction-to-acquire-30
Assuming any Amapa deal values our holding above the $33m for 30% that our last 3% implied then we are at the races. Something good on Sonora would be welcome of course.
Https://www.investi.com.au/api/announcements/emh/1460b303-a41.html