Reading the quarterly cash position in the reports just released has prompted me to do some deep thinking about the Mt Bevan project.
The lack of progress over the last 12 months in particular has been imo been caused by Legacys' lack of cash and an incohesive j/v, and I am not quite sure which factor has been the major stumbling block. I feel also that it has been difficult for Lcy to plan expenditure programs for Mt Bevan
with the uncertainty of funding from NMDC. NMDCs" lack of funding to date must bring into doubt the long term funding future and development of the Mt Bevan project soley under the Lcy/NMDC banner.
We have heard much about Lcy raising funds through an entitlement issue but again like most things promised by them fails to materialize.
The longer they wait to develop this project the less chance we will have of gaining some benefit or seeing the project through to fruition.
I feel that the quickest way forward at this stage is for haw to take-over the management of the project up until they reach feasibility stage. Once this project has confirmed jorc indicated resources and in particular a jorc DSO resource, the market may look more favourably on this project.
I feel that Lcy can no longer be relied upon at this stage to fund their responsibilities towards this project, so I am proposing that Haw set aside an amount every year ( Say $2m-$3m PA ) and fund in full the development to feasibility.
Haws' % of the J/V could then increase, as per an agreed formula, hopefully we would be in a position to hold 50% of the project in 3-4 years time.
It will be interesting to see the size of the budget proposed for the current proposed work, I have a feeling that it will not be a large amount.
My proposal is based on Haws' current liquid position and their intention to become a small gold producer over the next 6 months.
I somewhat hesitate to ask what do you think?
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mt bevan, how do we move forward.
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