Replies to post #13284 on Nextsource Materials Inc (NSRCF)

[riverrock]

I have no problem with DNI going into production and wonder why are you so negative about Nextsource.

I hardly ever looked carefully at DNI, but this article has some questions when one considers the Summary taken from its link.

http://www.stockhouse.com/news/press-releases/2016/12/16/dni-metals-inc-signs-loi-valued-up-to-4-5-million

excerpt...

Summary of the $4.5 million potential.
1. Cougar pays DNI Cash payments of A$300,000
2. Cougar pays Cash payment of U$150,000 (approx. C$196,000) to previous owner of the Vohitsara project (last payment owed by DNI)
3. When Cougar completes the drilling/resource/PEA, (by June 30, 2017), Cougar will earn 49% of the Vohitsara project. DNI's board had set a budget of C$1.5 million to complete the drilling/resource/PEA.
4. If DNI opts out of its first right, Cougar can purchase DNI's remaining 51% for AUD$2.5 million.

I take the above Summary as saying...

If successful DNI will have to give up 49% of Vohitsara to Cougar.

If DNI opts out, Cougar can purchase DNI's remaining 51% of Vohitsara for AUD $2.5 million.
As a result DNI will not be mining Vohitsara or have the Vohitsara Graphite Mine and possibly??? get AUD $2.5 million.

Things might have changed for DNI after Dec 16, 2016. Since you are positive on DNI, please tell us about them rather than the negatives about Nextsources.

Relative to Fort Dauphin being 200 kilometers from Molo, it is actually 220 kilometers, but I don't agree that it would take 18 hours to get there from Molo, which would require a vehicle speed of only 12.2 kilometers per hour. I can walk about 6 kilometers per hour and most people walk much faster than I.

As for the International Agencies, parts of Southern Madagascar lack modern infrastructure and the International Agencies have indicated that they intend to help Madagascar with improvements.