In Noront's news release yesterday, this was written:
..It positions the Company to begin negotiating downstream agreements that will provide future funding for continued development of the Project without excessive shareholder dilution
The future funding indicated is :
Estimated initial capital investment of $734 million split as follows:
- Mine site infrastructure and development capital of $500 million
- Shared infrastructure and slurry pipeline capital of $234 million
Where do you come up with $734 million without excessive shareholder dilution?
One way is by selling all or a portion of our chromite deposit. How much is it worth?
Well, we have approx. 15 million tonnes and I remember hearing the plan was to try to double this resource. Assay results are pending so we will soon see what we have.
The positive preliminary assessment that KWG did for Big Daddy on April 12, 2011 is a good tool to gauge the approx. value.
Here is the link from April 12, 2011
http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=40250250&topic=KWG:CA&symbology=null&cp=null&webmasterId=92583
KWG's 30% of big daddy amounts to a pre-tax NPV (8%) of 745 million
When you look carefully at Noront's NI 43-101 and you factor in the potential pending chromite results....we very well might get the full amount of our needed $734 million paid for by selling all or a portion of the chromite to someone else...like Cliffs maybe.
