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Marks answer to the first question on financing is really something. I could listen to it a hundred times. That they are working as fast as possible through all the regulations of receiving funds from certain pools of money. He's never spoken that way before as far as I know. So I'm just repeating what others have said that we are very close & it's a matter of accountants & Lawyers at this point.
That’s the most encouragement I’ve heard about financing. Sounds like a deal is almost complete.
Management has always said they wanted to run operations and build the mine under Niocorp. I’m wondering if this new development of hiring an operating company has been a requirement to financing and perhaps Mark was trying to find a way where Niocorp didn’t have to do this? Perhaps an explanation as to why it’s taken so long? Perhaps a sign we are very close to a deal now that Niocorp has agreed to this stipulation?
Walter I know you’re very close to the project. What are the major things holding up substantial financing at this juncture?
So did mine !! I was looking at my phone when the email came!!
We are all sensing something good very soon!!
Exactly there’s enough Resouce to probably run well over 100 years
It does truly sound like financing at least to a substantial portion is close!
Often in the past Mark spoke in terms 6-9 months out. I don’t recall him ever
Speaking the way he did on this call that something could happen very quick !!
Call in number is 415-930-5229
Access code 185-556-502#
Agree completely!!!
I think this Scandium contract, the amount & who the partner is, is probably the thing needed to move financing forward. Maybe even the key component. Plus one would think The Carlyle Group could help tremendously in financing. Sounds like we really are getting close!!!
Amen TODD !!
Personally I want the vast majority of Marks attention on Niocorp! Every minute not spent on Niocorp is a minute not spent on Niocorp.
The 10-k says the private placement is expected to be completed by September 7. Which means it’s already done. That gives them operating capital for rest of 2018.
The fact that the placement Units consist of 1 share and .5 shares instead of 1& 1 is a sign Niocorp wasn’t begging for the money.
I believe and hope they are close to a deal.
Next Tuesday will be interesting! Either panic selling or people buying!
3 day weekend to ponder the situation.
Also Smith probably has millions from Largo to help with in case of emergency!!
I think that the company is only giving a half warrant share instead of a full share might be a good sign !! I believe all the other placements gave a full share for the warrant?
It probably means they are closer to larger money. It certainly is a sign of strength.
So many things seem to be lining up in Niocorp’s favor. It’s really hard to understand why financing hasn’t occurred for simple folks like me. Unless banks are waiting on Nordmin report?
Financing could be announced with contingencies? Even that would be great !!
Yes I remember Mark saying something like “ these days the Engineering Firms often get involved in the financing and brings additional resources to the table” or even “provide some of the financing”.
Good point. And I like the “tone” of Jim’s comment to you.
I wish the tone of the Bloomberg article was stronger about financing being close. It’s still a bit baffling as to why it’s taking so long.
But it such is nice to see the Niocorp recently getting exposure with much bigger audiences!!!
Excellent observation!!
We must remember there is enough Resouce down there to go on for probably 200 years based indicated numbers if my memory is good?
Plus open at depth and also horizontal. There is more down there than anyone knows yet. Plus grades are richer at depth. We only start with
32 year mine life because that’s all banks care about initially. But this mine will last a very long time!!
Maybe now would be a great time to mention on Largo message board that Mark is also ceo of Niocorp!! And has a bunch of his money in Niocorp. Since there might be many new comers to Largo board ??
Apologize for keeping the Scandium price debate going. But I believe at the last townhall Mark said they paid $4,000kg? Maybe it was $4400-4500? Can’t recall exactly but it was at least $4000. For the joint IBC Alloys Project. Pardon me if it’s already been mentioned.
From page 36 :
USE OF PROCEEDS
The net proceeds to the Selling Shareholders from the Offering is estimated to be approximately $78,960,000 after deduction of the Underwriters’ Fees. If the Over-Allotment Option is exercised in full, the net proceeds to the Selling Shareholders, after deducting the Underwriters’ Fees will be $90,804,000.
The expenses of the Offering are estimated to be US$800,000. Whether or not the closing of the Offering occurs, all expenses of or incidental to the creation, issue, delivery and marketing of the Offering will be borne by the Company. If the Offering is terminated, other than by reason of a default by one of the Underwriters, the Company will reimburse the Underwriters for any and all expenses reasonably incurred by them, including, for greater certainty, the fees and disbursements of the Underwriters’ legal counsel.
The Company will not receive any proceeds from the Offering. However, the Company believes that the orderly distribution of the Offered Shares sold by the Selling Shareholders is beneficial to the Company and its shareholders, particularly by providing increased liquidity in the Common Shares listed on the TSX and OTCQX, and has therefore agreed to facilitate the Offering under this prospectus.
And page 36 shows use of proceeds of the sale of the 60 million shares.
Page 34 refers to the $150 million offering from May that is held in escrow that will pay down or off Largo debt.
Page 35 shows a different 60 million share arrangement that the company approves of its directors selling 60 million shares or (9 mill more) for increased market liquidity. But it looks like it’s not for any company benefit. Which means it’s for their reasons .
This is my understanding. Please correct me if you see it differently.
Just took a quick glance at that, you may be correct? Will read more later.
The release on July 20 states
The Company will not receive any proceeds from the Offering.
Its investors money.
My pleasure!!
Amen brother!!
At 50 cents we sell 100 million shares to raise 50 million cash. At $5 a share 10 million shares raise same 50 million. So I hope the equity portion rolls out in stages. But Mark knows what he's doing and he's protecting us.
From previous discussions with management over past 4 years. Mining deals may require as much as 40% equity 60% loans. Really solid deals require less equity. It would be incredible if Niocorp could do a 80/20 split. But
70/30 may be more likely? Anyway there will be less dilution if the deal occurs in stages when the share price will be much higher.
The more I think about it this Largo Announcement is HUGE! Mark has stated there are several parts to a large complex deal. Usually A is waiting for B , C is waiting for D to act etc etc. This Largo formal announcement freeing up a minimum of 84 million is not by chance. I doubt it's a loan. Lenders do not make the returns of investors. They are separate roles. No way these investors are selling shares of Largo to lend Niocorp money. But they would invest!!!
Hypotetical: After Capex reductions 900 million is needed.
A deal of 600-700 million in loans, requiring equity investors of 200-300 million. The 200-300 million come from several sources. The lenders won't commit until the cash is committed first. Equity groups B & C are waiting on Equity A. A is waiting for lenders to line up. This group selling Largo Shares is Equity group A !!! Then all the other pieces fall into place.
I absolutely believe these Largo Investors with $84-96 million are a huge piece of the puzzle. But it's my opinion, but it sure makes sense!!
What's not speculative is people very close to Mark Smith will all have a huge sum of money to invest. And they just happen to have it at a time when Jim Sims says "we are working 24/7 to complete financing". It all makes sense!!
Hope this makes sense. I'm tired and trying to say a lot without going to long.
Yes it’s in the Largo release I just posted.
NEWSTOGGLE NAVIGATIONMORE
Largo Resources Ltd. (LGO - TSX)
Canada NewsWire
TORONTO, July 20, 2018
TORONTO, July 20, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announced today the pricing of the previously announced secondary offering by the selling shareholders listed below for an aggregate of 60,000,000 common shares at a public offering price of $1.40 per share, for an aggregate price to the public of $84,000,000 (the "Offering"). The Offering is expected to close on or about July 24, 2018, subject to customary closing conditions. The underwriters have been granted a 30-day option to purchase up to an additional 9,000,000 common shares from the selling shareholders. The Company will not receive any proceeds from the Offering.
Credit Suisse Securities (Canada), Inc. and Morgan Stanley Canada Limited co-led the Offering, with CIBC Capital Markets acting as joint bookrunner, and Cormark Securities Inc., H.C. Wainwright & Co., LLC and Mackie Research Capital Corp. acting as co-managers.
The selling shareholders under the Offering consist of Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P., Arias Resource Capital Fund II (Mexico) L.P., The Cranley Trust, Cranley Investments Holdings, LLC, and Mark Smith.
Yes!!! When I get home I will type more extensively. But here goes short version. Every financial company listed in Largo announcement is someone Niocorp is/been dealing with. Mark knows them well.
At the town hall last September Mark mentioned a New York City investment banker who’s been helping. Arias Capital is in NYC!!
Just so happens Arias has a bunch of Largo shares along with everyone mentioned. But Arias might be largest. I could see all these people selling 60 million shares of Largo plus possible 9 mill more to raise the equity portion of Niocorps package.
Mark would probably like to have people on the equity side that he trusts!
Why would all these Largo investors want to sell 60+ million shares unless they had a specific place to put it? And Mark Smith is ironically right in the middle of it.
I think this 84 million may be a large part of the equity portion of Niocorps financing!!!! In other words we are close !!!! I hope this makes sense?
Of course there will be huge lenders also.
This Largo Deal is very interesting. Could it be that those investors of Largo selling at least $84 million in an offering (Largo will not receive any proceeds) will be using those funds for a Niocorp deal? That deal closes on July 24. Hmmmm very interesting!!!!
I was afraid exactly this response on share price. But so many positive factors are converging and bringing an even better forecast, soon this thing is going to move up. Who knows what thing will break it open, other than financing?
Jim said most permits are state related and since the local and state governments are so positive we should have little problem.
Walter you have a long time knowledge of company and your extensive business background. What’s your gut feeling on when financing may come out?
And any sense on what’s taking so long? Is Mark simply holding out for the right deal in your opinion?
Personally I’m not expecting any big bump tomorrow. This way I’ll be wonderfully surprised if there is. But it sure shouldn’t hurt any. Perhaps the biggest bump could come from people who know about Niocorp but will now jump in before things do take off. There are many who are waiting for financing before buying. But this may move them to buy at least some now?
It sure is great to see the board so positive again!!