XTR thoughts11 Aug 2019 23:57
Yes, off topic but in reality just a few thoughts.
People here are saying XTR and CB will need dilution to get Eureka up and running, but I have a slightly different train of thought.
My thoughts are Jubilee will finance both XTR for starters and later on GLR using existing funds from both the chrome AND the PGM's with a contract that states we get, say 90% of the profit until the loan and interest is paid in full, with us maintaining something like a 25% royalty in the various projects moving forward.
I state these thoughts, as we have in the past exchanged money for shares in BMR, which gave us the entry to Kabwe itself, but that was for asurface tailings effort, not a mining proposition. LC has stated on many occasions that he doesn't want to go down the mining route, as the costs can become extreme, especially if strikes, disruptions and the ore mineralisation dies down quite a lot. LC likes to process waste/tailings and ROM spoil as he can plan for these knowing full well what he is getting.
In my eyes, he will do a deal to finance both Eureka and probably Star Zinc, as both will need concentrators and they will be a million or two depending on if they are new or secondhand and yes, GLR and XTR might do a deal if any of the miners in the area have additional capacity, but personally I think Jubilee will loan both companies the money and will claim interest and a royalty moving forward, this makes sense, as there is no guarantee that firstly there are other miners in the area and secondly whether they have additional capacity to process it. I might be wrong, but it makes sense to me. We get more material to process and get a cut of it and both GLR and XTR get mines is essence making both companies viable.
Also I wish people would stop complaining about the cists for the DCM Fine Chrome Circuit, it is an industry first and in essence takes absolute waste and gets even more out if it. Plus now it is up and running, it will pay for itself and hopefully, when we re-process ALL the DCM Chrome we will make even more, plus as LC has said we will put in our other circuits, and we will produce even more Chrome for sale and the costs will drop for them, as we have proven that the technology works. It wouldn't surprise me if we go hunting all the Chrome tailings dumps for all the big companies, because we can process it twice and really make the most out of them. Also with the Eland/Northam Platinum connection, it wouldn't surprise me if we say to them, we will process your ROM spoil and when we get back the costs from the technology, we go to a 60/40 or 70/30 split on profit from the Chrome sales, as we have proven that we can take waste/tailings and make a killing from it, why wouldn't they be interested in this tech?
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