Member Info for theiceberg

We are kind of going round in circles here, maybe due to semantics. The FS (when read on Sedar all 260 pages), is very clear the legal document of the FS is for the sonora project it then details the licenses areas, etc associated with this. Your terms of a mineral pit are correct, but the FS is not for the pit, the pit is simply a development area. I am fully aware of the size, which is why i have said and quoted the 100 years of mine life, even if its increased to phase 2. As to funding, phase 2 is a direct copy of phase 1, re many components. There is 40m of costs though associated with phase 1 and not phase 2, related to road upgrades, grid connections etc etc. In the FS's pages are also a large number of costs, not included in the FS Capex, that still need to be carried out for phase 1 but will also apply to phase 2, examples are bore holes for water supply, these costs are easily 20m in total, if not more. Even things such as detailed processing machinery as per current work will be applied to phase 2 and significantly reduce phase 2 costs. As well this we have none asset capital such as trained engineers and operators from phase 1 which will go to phase 2. For example 10 full time engineers on phase 1 post production will take 6-12 months to hit 100% efficiency. For phase 2 they wont just employee 10 fresh people for phase 2, they will (if they have an ounce of ability), get 10 new people, split the experienced and new people 50-50 between the two sites, very small but practical example. Administration will also be shared i.e pool of mechanics, on site HR and clerical staff. The BCN management might choose to let KDNC off the hook and go soft, however there is plenty of evidence to suggest they should/must at some point contribute to the phase 1 capex and initial mine set up, whether this is post or pre development is up to the BCN management and i personally think 15m is probably a fair minimum for this. This is all a little bit side showy though. We are, i am sure due some stunning news soon, I've got a feeling that the funding being lined and more importantly the strategic partners being lined up will blow people away. It won't be with private China organinsations and peoples. Its also important that the 17.t T, is a minimum output. Anyways lots of good news to come and a host of complicated possibilities for funding.

We are talking about different eis imho. The mine license that currently exists won’t need an impact assessment. The ext will. However baselining etc will already have been done. The building of the actual plant will need eis in the same way that building a super market or collection or 30 houses on a greenfield site would need it. It’s different to a mine On a greenfield site imho and much easier.

The price will be required as the ownership changes. Ie divorce, transfer from one fund to another. Transfer to bypass iht. Ie kind of like a big version of bed and isa So yes notional buy and sell but not real ones ie nine price affect.

That’s the question. The problem is that phase 1 components will be utilised in phase 2. Bcn have also been careful to say that this is a project that included all of the license areas. It’s mentioned even in the wording of the fs. The funding is for the fs. Hence I can’t see how they can be excluded from fundraising at least to a minimal extent. Colin was very canny the contract and went through some aspects in detail with the nomad for the aim admission document.

That’s pure cash for kdnc not off take etc etc Ie the deposit that you would have to put down on ho for a car, house. Ie 15m just to get some skin in the game. 15 not collateralised, no guarantee backing. The figure for Bcn isn’t 435 it’s about £ 60m. Bcn will have companies wishing to buy into as equity partners. Kdnc almost not. It’s a complicated picture but the you need to view it as a single fund raising project with multiple components.

A bit late but I think they are probably ownership changes ie not really buys or sells at all.

Of 15m even pro rata. Even allowing for min debt re bond re dt facilities etc. If we look at kdnc sp. 10m for share holding in Bcn. That leaves 7-8m for their other projects. The market is valuing their 30% at zero. They certainly aren’t valueing it at say 20-25m which is the pro rata ownership that Bcn is valued at. I am not even sure that kdnc would want that % of debt on their books. My gut tells me they will be offered maybe 5% for monies already given as a free carry possibly.

The Projeet area comprises all licenses. Also the 8% will obviously be diluted and they will become very insignificant in all this. How kdnc are dealt with in this will be very interesting and no doubt complicating for things. If I had to guess Bcn would prefer the 30%?ownership to be in the hands of a partner adding value. Such a transaction might help with fundraising, if kdnc forfit their % due to inability to contribute costs. Even if you factor in a % of project held under the 30% contracts and pro rata the Costs accordingly they are well out of reach of kdnc.

Is there anyway that kdnc can keep its share of Mexico after the capex fund raising?

Below should say ask not bid.

It all comes down to lithium clays. Nobody yet has a made a major lithium mine from clays. People that follow the company will believe the 2 year pilot plant etc and sdk are very reputable. However finding 1/3 of a billion in funding from reputable sources(not Nextview) will be massively convincing. it’s interesting that the house broker is pushing the price down on the bid, It kind of indicates they are being paid in shares for the financing arrangement and would like a good price. Watch for Cana to move off the bid as this will indicate the the rate is decided and announcement is due. That they are doing this indicates they think the funding has been all but agreed. It will happen

You can tell a few things by the market makers on a book. By and large there will be 6 mm on a standard miners aim book. These inc the likes of peel fincap cantor etc. As a market increases this might expand to 8. For example south with an mcap of over 10bn have 8 along with dma, Solg have 7 with 400m mcap and dma. Bcn though is rather different it has 10 mms which a much smaller mcap. Mms can be on a share as a major client has expressed an interest above and beyond dma reliance. We don’t and won’t know but it does confirm well above standard interest in this share. If even pose a quest to find a single miner with this many market makers on the books below say 1bn.

Good point. The difference being that Portugal is already a working mine. It already has produced all the components. A mining license is already granted. Eis is completed. Due to this a feasibility study will only have to cover maybe 20-30% of a full pfs. Hence it can be completed more quickly.

The bigger investors happy to buy at 11-13p prior scoping. No reason this will stop and every reason it will continue.

Hope it works and the financing is good

Happy for it be used wherever. I might only write a few a year as it’s just my own research process I do as i go along.

Very tight spread and it’s still strange to see over 60 trades this earlier in the morning. Lots of new folk buying in. T

Mm movement on the bid and ask upwards.

I did the figures for this but tbh it wasn’t great. Not bad and with profit from Mexico should add to the bottom line in 3-4 years time. But I am glad in the video below Peter says 95% of time and energy is in Mexico.

I think there is considerable value in both companies, both are way ahead in terms of production likelihood and maxmismised margins than anything else on aim. Because Sav has fs, partner news etc to come it’s still got plenty of ammo to climb the sp along with its copper and Rio projects. Bcn as you say only really has one roadblock to overcome and that’s funding. Once the project is fully funded and on track to produce 300m profit a year it won’t stay at this level. Or anything like it