The problems with the market perceptions about AZS, including ASX analysts (at the beach or otherwise) with their preconceptions about operating in Mexico, refusal to take a closer look, insto limits on speculative exploration stocks and other dissonances made me take a closer look at how near a TSX listing might be.
Will it be necessary to wait until discoveries are converted into reserve status?
see pl.10. response to last question
"there is no specific requirement for Canadian shareholders at the time of listing, however we strongly recommend building a shareholder base in North America for a successful listing along with a plan to develop a liquid market through a public offering or financing."
Well we already have a North American shareholder base of around 20%.
"Sponsorship by a participating organisation or member of the TMX equity exchange may be required to ensure compliance with minimum listing requirements. However sponsorship can be waived if an applicant completes a prospectus offering or brokered financing immediately before or concurrently with the listing....".
So I assume brokered financing would include if the IPO is underwritten?
And on p.11 re technical reports:
"For mining companies [the standards are] JORC, SAMREC [etc.] with a footnote addressing any material differences."
The JORC mineral resource is due in April 2018. The PEA is due midyear. But it appears we don't have wait for a PEA for listing on the TSX, of course it would be optimal. DFS is due to commence 4th quarter 2018.
On the other hand we have the Canadian equivalent for Oposura already, it is old, but now we can value it differently because of the metallurgical and processing assessments and new Zn price.
3 month spot price now $3502 on LME. Resource target $250-300tonnes. $875.5m in ground valuation conservatively.
We have the reserves at Alacran, and we technically own 100% of that until Teck changes things. It seems likely that will happen if they make a serious Cu find in which case we're in clover anyway.
But for now:
32m oz silver @ $16 per oz = $512m in ground valuation.
150m oz gold @ $1320 per = $198m in ground valuation.
Close to surface means low cost recovery.
We don't yet have resource estimate for Sara Alicia but drill results are due mid March.
So is this a major ann, or just a bit of a CR to finance an opportunity (eg. Sara Alica lease extension)
and/or keep things ticking over?
AZS Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
