It seems obvious to say that it is absolutely a must that a company have sufficient funds to complete the project. You must also have enough money, or a call on enough money, to cushion the inevitable delays in the mill start up and run-in period.
If you have a 4-6 month run-in period during which production is a fraction of what you expected it to be and operating costs are, say, $1 million a month, it doesn’t take long to add up to $4-5 million, which is a lot of money for most junior companies.
That’s when panic starts to set in and, if it’s a joint venture, things can really get dicey. That’s when the partners’ different financial positions, different goals and different objectives surface.
Most new marriages that fail usually go on the rocks over money and this certainly applies to mining joint ventures.
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