Just my opinion; the “let them bleed” has been underway since they (Huayou) took an equity position. They bought in and have been waiting.
If Mark can prove we have a financing package (including offtake to a third party) it will demonstrate we are able and willing to move ahead alone, we are not vulnerable and that may change that “wait and see” position.
We can only take Nzuri at their word when they say:
”These include the finalisation of discussions with financiers and the completion of a suitable debt funding package, including political risk insurance, completion of product off-take agreements, and the award of an Engineering & Procurement (EP) fixed-price contract for construction of the plant and associated infrastructure.”
We have the cash buffer to finalise these items now and put the ball in Huayou court.
Huayou just allocated another ~US$140m to a copper project in DRC, they don’t seem too phased by the market. A year ago they bought a deposit with resources (not even at inferred stage based on drilling I can see on the property) stated at 400kt copper / 20kt cobalt for from memory us$130m (100% basis) with gecamines as a partner (adds cost and risk).
These are great comparable transactions for us to base discussions on.
We have 330kt copper / 40kt cobalt, mostly M&I, ore reserve, millions spent on FS, met, site prep, couple of satellite resources, large tenement package to explore and no baggage.
I did however expect all of the above to be done and dusted before 2019. Between the mining code and the elections we have been pushed back a full year.
Anyway good show by Tembo today, that also sends a signal to anyone waiting and watching.
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