RE: Another good volume day16 Jul 2020 19:30
DD2, thanks for your update and I do hope good fortune awaits you, with the outcome of the EUA asset sale process,
I am not as pessimistic as you are, as the board have noted on a number of occasions, that they are fully funded for this stage of the project development, as in exploration, JORC and PEA and cash at year end, plus the final cash payment from ValOre, would equate to circa £1m, not the £300k you suggest, for reference, it is noted in the recent corporate presentation (June 2020) as c$1.5m.
That said, it is understandable that funding will be needed at some stage further down the project pathway, probably the key question is, what financial instruments will they consider?, the board have demonstrated a reluctance to issue equity at low premiums and that in part may be aligned to their significant shareholding and their understanding of the assets they hold, plus there is the option to liquidate part of our ValOre holding, that as an option I would suggest will become more viable as the Autumn and Winter approach, as the news flow and results from the PB drill campaign will be far more advanced, plus dependent on the output of the JORC and PEA, there will be a greater market understanding of the Pitomberias asset value, which may lead to an improving share price, which in turn, could potentially lead to warrants being exercised,
I would also not dismiss the availability of project based finance models, this was a consideration previously and the £1m loan terms with Celtic Capital, were very sensible, they know the board and asset very well, plus as you say, a JV or even an off take agreement could also be considered and as the ore is near surface, a relatively modest capex plan could be developed, so at this point I think there is a lot more of the story at Jangada and ValOre to unfold, before we reach the stage of finding the right funding answers, to the production stage of the asset,....GL S
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