Yeah, so it would appear, people investing (of course all they want is a pump so they can leave) truely don't understand what makes AIM Companies tick, JV's, de-risking and cash on the books are what SP's love, but what do I know.
I think some of the Kiboians over there don't seem to appreciate the JV/ tie in's within this group of companies sadly. Panic selling upset the cart over there a bit yesterday, which is crazy considering the deals are fantastic for all parties
Of course the Haneti is now one year more progressed from this previous JV and the important geochemical interpretation work is underway and nearing completion and soon to be released, so watch this space.
I think there is a very good chance that ECR will be KIBO’s JV 50 / 50 Partner at Haneti. Haneti is a significant ground exploration operations have been completed in recent years with results being collated and a geochemical interpretation exercise nearing completion. Haneti is prospective for multiple minerals including nickel sulphides, PGMs, gold, lithium and tantalum/niobium. The project has drill ready nickel targets and is the subject of discussions with potential partners with whom the Company would look to advance project development.
When you look back to KIBO’s original JV with Brazilian Major, Votorantim, who later withdrew from the project on 5th December 2013 because of ‘a strategic review of its Southern Africa exploration operations’ Haneti was always planned to be a larger exploration target than most, underpinning the strength of what LC believes KIBO has at Haneti and its future worth.
As per the original JV on the RNS of 12th December 2012, Votorantim had to:
‘Under the Joint Venture, Votorantim will initially contribute a maximum of GBP 2.7 million over a period of three years ("Initial Period"), to fully fund an agreed work program budget at the Haneti Project. Upon expending the full GBP 2.7 million within the Initial Period, Votorantim will have earned a 50% interest. Once the Initial Period has concluded the parties will continue to contribute equally to the working capital requirements of the Joint Venture. During the Initial Period the JV will carry out exploration activities aiming at the identification of the mineral potential of Haneti, focusing initially on the exploration for nickel and PGEs in the extensive mafic-ultramafic belt, located at the proximity of Dodoma. Work conducted during this period will also aim at establishing an initial early stage JORC compliant mineral resource at Haneti. Following the Initial Period the Joint Venture will consider the further development of the project on the merits of the exploration results achieved.’
Now, when you look at the connections between Paul Johnson (ECR / MTR), Christian Schaffalitzky (KIBO / Eurasia) and Louis Coetzee (KIBO) and all the tie ups of late (Pinewood, stake building, etc, etc) then I think there is a real possibility that this happens. However, this will be the biggest deal of all IMHO (by quite some margin) as it will take a over that £2.7m to get it to JORC IMHO as it is a big old prospect (maybe more).
Now, when you look at the £10m YA Facility that ECR have available and the considerable tax loss (£m) through MGA that is due very soon, they have the means (£££) and the deal maker (Paul Johnson) to pull this off.
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