Additional thoughts on this Zach contract
Niocorp is mindful of the pertinent regulations. If they say we plan to produce REEs that starts a 45 day clock. When that clock runs out they are required to issue a revised FS with the details. They really do not want to issue a revision every month or two. They want one complete package that tells the whole story. That is a big project. We are changing the extraction process, changing the refining process, and adding products. The revision needs to include the impacts on OPEX and CAPEX for all of this. We need to finish all the work at L3 in order to calculate all of this. Jim will continue to issue PRs with updates on results. But he will continue to say “we have not made a final decision on REEs because we have not done an economic analysis.” He does not want to start that 45 day clock until he is pretty darned sure we can produce a revised BFS within 45 days. I do not mean to imply he is being deceptive. Niocorp really can’t make a final decision until an economic analysis is complete. When all of that is complete they can issue a revised BFS in 45 days.
HOWEVER, we signed a contract with Zach to develop a cost for the surface facilities. The first questions Zach will ask are: what do you want these facilities to look like, what is the extraction and refining process, do you want to produce REEs? They can’t develop a cost unless they know the answers to these questions. I really doubt Scott would sign a contract with them unless he knows the answers to these questions. He can always go back later and say sorry, changed our minds, what will it cost to revise? It may not be official, but Scott would not have signed this contract unless he was pretty certain of the direction we are going. And, as always, JMHO.
