The reasons put by the Stratex requisition parties who stopped the proposed merger (apart from massive shareholder dilution) was the projects were bordering on uneconomic and early stage, needed exceptional capital spend.
For example the Base Case for Borborema, needs US$262m spend for a NPV of $116m
Optimised Case suggesting US$93m spend for a NPV of $118m - does the market really believe the OC numbers - I think not.
They also admit their other project Juruena, which shows high grades, is hard to understand and needs more work carried out, this means an expensive drilling programme to move it forward.
Note also the default by the purchaser of CAS iron ore project, nothing has been heard in this respect, one has to assume the payment default continues, not good.
The most obvious fear for investors is continued dilution.
CAS Price at posting:
4.3¢ Sentiment: None Disclosure: Not Held
