Focus Ventures (FCV.V) announced it is currently completing a C$2M financing at C$0.125 per unit to continue to develop the Bayovar 12 project near Piura, Peru. Each unit consists of one common share as well as a full warrant, priced at C$0.15 in the first three years, followed by an exercise price at C$0.20 in the subsequent two years.
This should enable Focus Ventures to complete the pre-feasibility study at the Bayovar 12 project. No details have been leaked just yet, but our internal models are pointing in the direction of an after-tax NPV8% of C$300M using conservative parameters and a discount to the current phosphate price. Again, these are our own back of the envelope calculations and have NOT been confirmed by the company. But there’s one thing we can be sure of; this will be a low-capex (<$50M) and very straightforward mining project. We will release an update report on the pre-feasibility study in November, wherein we will share our expectations for the upcoming study. > Click here to go to Focus’ website
Disclosure: The author holds a substantial long position in Focus Ventures. Focus is a sponsor of the website. Please see our disclaimer for current positions.