I did a bit of work recently following Cupric Canyon securing US$265m in financing via a silver stream and suggested I thought MOD could follow suit and get somewhere between $60-$80m in stream finance for T3.
One key benefit of doing a deal like this is tax minimization. A stream would reduce profit margins and thus taxes based on margins (how taxes are determined in Botswana). It would also mean the avoidance of repatriation taxes to get profits back to shareholders via dividends (7.5%).
Doing a deal via streaming will help finance the operation, reduce dilution and minimize taxation. It also means we can monetise a component of the operation upfront to a streaming company who possesses a much lower cost of capital. A win-win IMO.
