You are going to have to start a little bit smaller, but we are very confident when we look at what our definitive agreement might look like with all of these. When we look at where things might end up with PAMCO, we are feeling very good about what that’s going to mean for our EBITDA margin and free cash flow positivity on Project Zero. One data point to look to in March 2022 in the non-binding term sheet signed with Allseas, it was guided to €150 per ton of costs initially for Project Zero to personal new collection and then shipment to shore. Again, costs are moving around all the time, and it’s based on market factors. But pretty much any scenario that we look to, we are going to have a nice healthy margin left over. We might also take a question here from Michael Breier.
We have $47 million of cash on hand. Run rate cash expense of annually is $26 million to $74 million per year. So, how do you finance the gap to 2025? Thank you for the question, Michael. I think it’s important to keep in mind that again, what you have seen over the last several quarters has been many hundreds of people at sea working tirelessly at a project, but now we are at the stage that the campaigns are mainly done. There are also €“ of course, we did the collector test, which was many months at sea and also had a second vessel. So, the going-forward cost for our company, public company expenses and personnel costs, etcetera, we really think that if needed, we could get down below $5 million per quarter. So, the gap that we need to fund is not many hundreds of millions of dollars.
It’s somewhere in the ballpark of $100 million to $150 million of additional cash required to get into production. So, with that number out there, we think as we have shown with this €“ some of these financing options over the last few months, we are going to be able to do what we can to take step-by-step to funding that number and make sure that we are doing it and as low with as little dilution as possible. It may be in the form of a one big transaction potentially with the partner, if you are talking about an earning or stake sale or other asset level possibilities, but we have the tools at our disposal to get there in many different ways. And one more question I see from Timothy Burn. Gerard, if you might want to take this. The 3,000 metric tons of nodules, how are they being handled now?
Are they still in the shift. We did mention 22 tons of it ended up at the Hachinohe facility in Japan for some testing with PAMCO, but Gerard, maybe a comment or two on what we would intend to do with the rest?
Gerard Barron: Sure. The €“ some of them are still in the ship and some have been sent to partners, and we are currently negotiating with Mexican authorities on storing them in a facility in Mexico. And so because we have completed a lot of the trials in 2021 and 2022 on the pilot processing, it’s €“ we felt we needed to bring back nodules, but the truth is we can’t sell them. They can only be used for testing. And yes, so it’s €“ they are kind of €“ we are figuring out what to do with them, to be honest.
Craig Shesky: So with that, I think we will turn it back over to the operator and wrap up the Q&A.
Operator: Certainly. Thank you. This does conclude the question-and-answer session. I would like to hand the program back to management for any final remarks.
Gerard Barron: Nothing on our end other than thanks everybody for your interest and attention. And we will see you on our Q1 corporate update call coming up in May.
Operator: Thank you. Thank you, ladies and gentlemen for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
