@82Punter ........"From memory WFE has already got $10m (AUD) raised, or at least commitments for it, so that's looking like an easily fundable proposition to get the plant into production and earning some $$!"
The cap raise from last year is null and void, the company have been told by the ASX they have to do the raise via prospectus, which they are working towards.
Circumstances have changed greatly in the many months, namely cobalt having gone from $US86,000/t to $US29,000/t.
IMHO every large potential investor would want to re-evaluate the opportunity before committing.
The initial cost of the 50% interest in the facility is $US5.5M (plus 300m shares)then the exploration leases are a further $US1.2M, all up $US6.7M or about $A9.5M. So even if all the $10M from the prospectus was raised, a FURTHER $US10M is needed to get the plant operational (as per today's report).
Where does this further $US10M ($A 14.1M!!!) come from?? Judging from other 'deals' recently from DRC, financing looks VERY expensive (see VEC), so further cap raises look likely.
Has anyone seen where initial costings for building/refurbishing a processing plant by any company have actually been on budget?? Every single company I've ever followed/invested in has gone way over budget in their expenditure on processing plants build/refurbishment, so even the $US10M might not cover it.
Even today's report on P91, clearly identifies the risk in refurbishment as 'high'.
"Refurbishment not costed in detail-unknowns"
