I will agree, better a slice of the pie then non,
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Croesus is the first peep to G-up. One in the air one in the chamber.
I will not be agreeing - I say take out a loan to pay for processing of the reserves and cut out the need to give a disproportionate amount to external investors. I don't know if this is practicable but on a rough calculation the interest payments would be minimal compare to 65% of the profits of the reserves.
And the money can be used to get the mining going just as quick, surely.
Next thing you know ............... NTL becomes the next F&P appliances.....
So they are going to invest nearly 1.5 times the MCap of the money in exchange for 65% of the profits from the reserves...
On a rough profit calculation of $500US per ounce * 28,800 ounces (as per feasibility study at post 942) = $14m US
This is not taking into account the silver reserves either.
Hell no we won't go!
I don't think a normal style loan is feasible, someone with more knowledge of mine funding might be able to shed more light on that. It does look like expensive finance, but then again it's risk free.
At least we know the meaning of "very near future" now.
then again in the reports and plans that have come out previously NTL was always going to bring in a 3rd party to process the ore. from what i see in this the 10.9m will be used to process their own ore as well, increasing the return per ounce to NTL and reducing overall cost of extraction.
Made a tidy profit today and after previously loosing out with my investment in GEL I am more than happy with the direction and progress NTL management are making
I'm not too sure yet, either. Once this gear is in place, NTL will need to pay the owners of it at some agreed price for future ore recovery. I don't think the banks are too keen on loaning to startup miners. NTL had intended to slowly start with seed funding from shareholders, and then use the cashflow profits to fund steady capital developments. With this new idea, the owners of the processing plant will want a quick return on the capital outlay, and so the prefeasibility ore will be taken out a bit faster, I'd expect. But who knows what other spots NTL will find in the meantime? Anyway, over $10mill of capital was required by the look of it. One downside is that perhaps there won't be a lot of local content in the equipment supply.
All this has happened since October. Good progress.
Nah actually I was referring to the similarities in circumstances of both FPA and NTL.
Both FPA and NTL struggling/or in need of significant investment to stay afloat, both get significant asian (namely Chinese) investors, both eventually get bought out (could happen?)
No guarantee that it will play out this way, but you'd be foolish to rule out the possibility.
What if cornerstone investors get early inside info to prefeas. & scoping studies and the reserves of the unexplored parts of the mine are gigantic, what then?
Jeez, I go away for 3 or 4 hours and all hell breaks loose.