CAPEX & COMEX, page-61

The SA purchase price was tiny - $125,000 iirc. But the real loss of value arises from the wasted time and investment involved in reaching this point

When Teck exercised its claw-back in Dec 2016, and Azure was forced to seek new opportunities, it had $13m in the treasury.

Azure spent 9 months or so poking around Mexico for new projects. After it finally settled on Oposura and Sara Alicia the kitty had fallen ~$6m.

One cannot simply attribute the cost of this tenement to the purchase price, it’s the cost of the corporate apparatus, salaries, sub-contractors, field testing etc, all of which occurred prior to any drilling taking place. This totaled many millions of dollars

I don’t know how much exactly the company spent on its drilling SA, but this obviously also added to the cost too

It’s akin to buying a broken down Datsun 180y on Gumtree for a few hundred dollars, spending tens of thousands fitting it out with body mods and new kit, and when the car still won’t run expecting to get all ones money back when it places the car back on gumtree

I believe the company will be unsuccessful in even receiving the initial purchase price ($125,000) because all they have succeeded in doing is proving this mine’s very margin economics