The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This is on the governments website
https://www.gov.za/services/mining-and-water/apply-mining-right
About applying for a mining right
You need permission from the Department of Mineral Resources to mine minerals within a certain area. This is granted by way of a mining right.
A mining right may not exceed a period of 30 years.
A mining right is granted if:
the mineral can be mined optimally you have the funds and expertise to conduct the proposed mining operation optimally
the financing plan is compatible with the intended mining operation and for the duration thereof no unacceptable pollution or damage to the environment will occur as a result of the mining operation you have made financial and other provisions for the prescribed social and labour plan you are not contravening the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) (MPRDA) the operation is in line with the Mining Charter.
What you should do
Apply online.
Apply for environmental authorisation at the same time.
Pay the non-refundable application fee.
If the system accepts the application, you will be notified. You must then notify and consult all interested and affected parties within 180 days from the date of the notice.
How long does it take
If your application meets all the requirements, the regional manager will notify you in writing within 14 days of receipt of the application if it has been accepted. The regional manager will instruct you to consult with the landowner, the occupier of the land and all other affected parties.
If the application is not successful the regional manager will return the application to you within 14 days.
If the Minister refuses to grant a mining right, you will be informed in writing, within 30 days, stating the reasons for the refusal.
thanks for explaining the process fatbanker
They obviously followed the rules but just saying that between receiving the information, writing the RNS, which wasn't a simple application granted one liner, BMN do what they do and provide more information which would have had to have been approved for release.
This takes time and in that I believe certain people became aware and started the increase in sp. Pretty sure if BMN could they would have preferred to wait a few minutes for the market to close and release it in the morning to get a full days steam out of it.
1. department advises bmn right granted
2. knowing this, bmn can safely arrange the vendor loan to the receiving shareholders and arrange for the shareholder amendments to be made.
3. once the dept see this has been done the mining right is ratified and made absolute
BlueMonday... exactly right.
The immediate release of any news that could be considered to move a company’s sp (up or down) by more than 10% ... has to be released as soon as the company are made aware of it in order to comply with the market disclosure rules. They are legally obliged to comply or face punative action against them for withholding sp sensitive information. That they are aware of. The timing of the RNS release yesterday was simply an example of the bod following those disclosure rules
Fair enough, thanks for the replies. Was a little confusing, didn't know that it's a two part process where you are granted the right to have your licence granted!
Looking forward to completion. Strong buy as ever.
I have to agree with that
Yes, thats right BlueMonday. But if it wasn't just a coincidence that yesterday was the day people finally decided to take positions with Vanchem coming up then I would suggest that the information became open knowledge to some and forced BMN to RNS the info.
Correct me if i am wrong but we were already 12%/15% up before that RNS dropped
Without casting aspersions knuttie (he says while casting aspersions :) ) I can only assume the leak (if any, yesterdays rise COULD have been purely coincidental) would have come from the mining office.
Sickoftheratrace, I agree it does state that but if you look at the title of the RNS and what Fortune says it looks like an application. That is the conclusion I came to after reading it about 10 times! I am no expert(if you can excuse me using that word!) so could be wrong.
As I said if that is the case then we have gone up 20% on just the application so what will it do when it gets granted!
Pb940, my thought entirely. It is likely Fortune would have announced when all the requirements were ticked off. Bringing it forward in the circumstances was exactly the right thing to do.
Is it possible that this confusion comes from SP Angel using the word 'licence' but in the RNS it is referred to as the 'mining right'? I think it is the same thing!
This phrase from RNS is key: "... The mining right will be executed and issued by the regional office of the DMR, on a date still to be advised."
I wonder if we wouldn't have heard anything until the full mining licence had been granted if it hadn't become apparent yesterday someone knew something?
is there a chance the finance for vanchem could also include finance for mokopane development? or will the latter be from cash flows?
Slides 19-20 on the powerpoint are interesting too.
GLA
Obviously the mining RIGHT and the actual license to start digging are two separate parts of the grant... but even so it shouldn’t take very long to get the remaining issues, which seem to be just legal formalities completed.
From this extract it could even all be finally settled before the end of this month.
“Bushveld is keen to gain full rights to mine the Mokopane vanadium, magnetite mine ahead of its acquisition of VanChem due at the end of this month”.
“We understand that Bushveld is fully funded for the $68m acquisition of Vanchem and will move to start
development the Mokopane mine as soon as the full mining license is received and the Vanchem acquisition is done”
Sounds like they intend getting started building the mine complex very quickly and are expecting the full license to be granted as soon as the legalities of the local community sell-on arrangements are completed.
RNS: " has granted a mining right to Pamish Investments "
Says nothing about "mining right application" - says "mining right"
From the SP Angel piece. Pay attention to the last point...
• Bushveld Minerals report the issuance of a mining right application for the Mokopane vanadium mine in South
Africa.
• The mining right application is significant as it is a step towards the award of the mining right and a full mining
license for the Mokopane mine from the Department of Mineral Resources.
• Bushveld is keen to gain full rights to mine the Mokopane vanadium, magnetite mine ahead of its acquisition of
VanChem due at the end of this month.
That last point seems to suggest the application could be/will be approved before VanChem is done.
Now that as a quick fire pair of RNS ought to have some serious impact, right?
The problem is some saying we don't have the right yet, so I am a little confused.
" the Department of Mineral Resources and Energy ("DMRE") has granted a mining right to Pamish Investments No. 39 (Pty) Ltd ("Pamish"), in respect of the five farms Vliegekraal 783 LR, Vogelstruisfontein 765 LR, Vriesland 781 LR, Schoonoord 786 LR and Bellevue 808 LR situated in the District of Mogalakwena, Limpopo, which make up the Mokopane Project. "
Application granted. Start date to be agreed. What's the problem?
Can anyone clear this up/clarify?
Do we need a licence?
Read 3.3
https://iclg.com/practice-areas/mining-laws-and-regulations/south-africa
@Squirtyflower. Well I will be honest enough to say I thought we had been granted a licence but as you correctly say it is a right to application. This is a big difference.
I wonder who else has made the mistake I did? A few I reckon by the comments!
Certainly the market wouldn't have. So to go up as we did just on the right to application gets me excited to think what it will do when granted!
From the quick research I did it looks like the application does not take long to get approved. And I agree with you that we will get it
SF thanks for the correction and apologies for the loose terminology. However that does not alter my message, so all good as far as I am concerned.
Regards. Pdub.