CGrowth Capital Inc (OTCMKTS:CGRA) reported preliminary net valuations and data on its magnesium dolomite reserve. Considering the physical characteristics of the reserves site, water tables, and expected mining expenses, the likely mineral reserve for the time being has been determined at 63% of the preliminary survey reserves of 505m cubic yards. It comes as 420m tons of resources, considerably surpassing initial expectations. The team projected economic benefit of nearly $2.7billion, after accounting for loss, reclamation and royalty.
The expert view
Bill Wright, the CEO of CGrowth, said that as expected, it is evident that the company has bought a very special reserve site with a resourceful material. It will result in several lucrative opportunities for the company. The amount of resource that can be extracted immediately gives the company with a generational project and enormous opportunities.
Securing robust asset-supported financing and discovering the potential bulk sales channels are the next two main objectives. The CEO added that while there is a lot more work left to be done, they have taken a first step forward towards achievement of next goals.
The highlights
Magnesium Dolomite when used as a base material offers numerous applications and uses in many industries including horticulture, construction, healthcare and pharmaceuticals and healthcare. The expansive market growth may help lead the market value of the new material, while potentially accelerating its commercialization.
The CEO concluded that CGrowth Capital Inc (OTCMKTS:CGRA) team had devoted last few years identifying and purchasing assets that would help company to achieve its expansion plans. Now is the time for company to change gears and move from planning to execution as they start to monetize the bought assets. The company has all of the things well placed and is set to aggressively go to market and assess exceptional value for CGrowth shareholders.
In last trading session, the stock price of CGrowth declined more than 22% to close the trading session at $0.00270. The decline came at a share volume of 16.90 million compared to 4.36 million.
