Labrador Iron Mines Holdings Ltd (LBRMF)

[bobbleheadtwin]

Selling to offtaker has its up and downside. If offtaker finances costs at a discount for set price of ore, profits help to get locked in at a set price, you will know what you will get for possibly years to come. Low startup cost, not looking for buyers. Downside, they have more influence on you, if price increase you sold to cheap. If it goes down they might try to renegotiate
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Possible financing options, Dilution of shares to raise funds, ( I hope they would not be interested with this, I like the outstanding share structure ). Toxic debt ( absolutely not ). Bank financing with line of credit. ( Best option if no offtake ). In the end they own equipment, and other assets but would need to be expensed over mine life.

Downside to financing, The cost of money borrowed will determine profits. If their is a collapse of ore price we are holding the bag with debt.

My vote is offtaker with 3-5 year contract with minimum price of $140 for the contract term with a maximum price set at a discount to offtaker of ore at time of load. ( If ore price @ time of load is $220, discount of 10-12% } would be great for both parties, they make money, we make money. Just my opinion