Zumore, whether there are delays in obtaining licences or not, the application process itself appears to require finance. Read my 21:42 and 21:44 again. Even to just be ELIGIBLE TO APPLY for a licence you must :
"demonstrate financial capability by providing account statements of an account held at an Ivorian bank"
The MiningReview article I highlighted (actually from a Bloomberg article here:
claims that you need an investment budget of 600 million Francs (CFA) (equates to £750,000 currently) and capital of at least 20 million Francs (CFA) (equates to £25,000) to APPLY for an exploration licence RRR is applying for 3 exploration licenses.
As ever please check my figures here in case I have made a conversion error etc.
Now I am open to other people's interpretations of the articles but at present this says to me that we have to stump up the £75K capital (which is covered by DS's £100K), and demonstrate we have the investment budget of £750,000, in an Ivorian bank account. Also, reading that article through, it is not entirely clear if that investment budget is PER LICENCE. If it is that would mean an investment budget of £750K x 3 = £2.25m in all.
Either way the investment budget and capital appear to be needed just to apply for licenses. Therefore my question to you and all holders is. . . where will the £750,000 (or possibly £2.25m) come from?
I have already e-mailed RRR on this very issue.........................I see no problem in acquiring application asap for the 3 licenses....................money already promised by d_s_
So once having them ...........options. 1. Sit on them hoping to get a farm out/ sell part to another company for next exploratory stage. AB has already done one of these for RGM to RAM for Fraser west license.. And RRR have effectively farmed into another license held by NAMA , i.e. NGL Greenland's Melville Bugt.
2. Start prog. for trenching/surveying immediately, after acquiring license.....................to keep his technical team occupied. That said the last IC update did say that such team would be consultants working for another Co. ( .Basse Terre sarl) in Ivory Coast.
ps.............I have also sent another e-mail on AB's performance at last Saturdays UK Investment show.........
I actually wouldn't mind if there was a long delay to the Ivory Coast exploration license being granted because Ivory Coast will cause big dilution and i don't want big dulition at this lowly price.
If there was an Ivory Coast delay then hopefully in that period we could then get things sold + see good results from Jupiter and then Red Rock's price could rise significantly and then we could think about the Ivory Coast venture.
I'm not being negative but dilution is my biggest fear with Red Rock and in years to come i don't want us needing a £10 million mcap just to get to todays price of 0.35p: but as the years tick by and AB's liking for dilution then that could easily be a possibility.
Trying to read AB's body-language at a conference through a camera lens via a computer won't get anyone here a brass ha'penny. Greenland is "open" for business only each year from mid-June till Deptember,about 3 months.Mt.Ida is "open" 12 months a year but is moth-balled.Should Mt.Ida have 4 times the theoretical attraction for an investor ?
video talking about gold and mining. AB was on the panel and i watched all 32 minutes and the first 18 minutes was pretty boring but from 18 minutes onwards it was pretty fascinating stuff. So i recommend watching from 18 minutes onwards. :)
When one panellist said "dilution is the enemy of wealth creation" i'm sure i saw a little squirm from AB. And when another panellist said if management "only own 3% of the company they'll go out to raise money to pay themselves as day follows night" i'm sure AB looked uncomfortable again. Some other topics like talking about crooked management. Really interesting viewing.
And on a side note Amanda Van Dyke looked stunning.
I have also tried to find examples of other gold prospectors in the Ivory Coast to see if it can help us understand how quick or long the process takes to get an exploration license granted, the better to manage our expectations here. I encourage others to do the same.
Taruga Gold Ltd is one example. It appears to have applied for exploration licenses sometime before Feb 2012 and the licenses were finally granted some 1 1/2 years later. See the 2 RNSs below:
"the eligibility requirements to apply for an exploration license in the majority of African jurisdictions is "technical and financial capability". In an effort to reduce what is commonly referred to as "speculation" (i.e., companies or individuals who acquire permits with a view to resell and not complete the legally prescribed work on the property), the New Code requires applicants to demonstrate the completion of a minimum of two exploration projects in the two previous years, and to have an exploration manager with at least 7 years of experience who has managed a minimum of 2 projects. The New Code further requires the applicant to demonstrate financial capability by providing account statements of an account held at an Ivorian bank pursuant to the requirements to be established in the Application Decrees"
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