Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
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Potentially NYUD lands 100% and others at 75% -
"also have a right to acquire Rosego's 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report ("CPR") on Nyud."
"· Prepare CPR under the JORC Code."
"as we continue to develop the Company including the upcoming acquisitions of Nyud, Moroshkovoe and other significant Rosgeo JV PGM and battery metals open pit deposits."
They have stated that the acquisitions are upcoming in the latest RNS, from previous we know Wardell Armstrong are doing the JORC for at least NYUD at this stage, therefore NYUD has a high potential of arriving at 100% through the relevant rights attached.
GLA
Hope you are right Mac. I read the purchase of the remaining 25% as an option post finalization of JV plus then completion of JORC. Your outcome is much preferred though provided the coffers have it covered which I doubt!
The licence transfer will be a significant step, hopefully that is sorted out soon
I guess the disconnect comes from the hot money money in this share really only being here for an asset sale of some sort.
Whilst the JV news could well be the making of the company in the future, it doesn't satisfy the need of some investors of a quick return on their money via the asset sale.
As such, anything not directly linked to selling stuff, or anything that could make people think a deal is further away, will be seen as a negative by those who only care about that.
I do find others saying we are worthless and no sale will ever happen to be intriguing. Whilst we may not sell, it has to be remembered that we were approached, we didn't put ourselves up for sale.
Also, if we were worthless, then the whole potential for a sale would have been over pretty quickly, either via a hostile takeover for peanuts or by the fsp ending very quickly with the BOD not entertaining the offer.
If a deal of any sort does happen, it will undoubtedly be on the bigger side, otherwise why has everyone been spending so much time on it for the past 2 years or so
With JORC done they can purchase all at once Suts. The JORC gets done during the long license transfer window, that's what Wardell Armstrong are doing. JORC NYUD first, that comes 100% owned under the rights option. JORC the next, that comes 100% etc etc until all Rosgeo JV assets land in Eurasia's coffers.
GLA
IF = JV autocorrect!!!
I agree with you Mac other than we need to buy the 75% share first. More resource in the ground than originally identified hence additional fund raise in line with previous board response to potential placing if resource proved to be larger. Once IF signed off JORC will be completed and then we can go for the additional 25%. Happy days!
It is staggering looking back to the 26th March RNS Rosgeo JV announcement that it had no impact on the share price. We were at 28p on 26th March, and currently 24p. The disconnect to fundamentals and positive steps the company has taken in that time is baffling.
Not only did it significantly increase the long term resources available to the company, but it gave a lot of credibility to the company being an agreement backed by the Russian Government.
"The Directors are delighted to sign this agreement with Rosgeo, which by expanding Eurasia's open pit assets both in palladium, platinum and in battery metals by a total of 104.6 Moz Platinum equivalent resources, unlocks a number of additional opportunities for the Company and its shareholders."
This part here being a repeat process to bring all Rosgeo JV assets that they decide to develop to the table as 100% owned -
"Additional drilling has recently been completed on Nyud at Rosgeo's cost and Eurasia has engaged Wardell Armstrong International in relation to Nyud to among other things:
· Audit the quality assurance and quality control procedures;
· Review the block modelling and open pit optimisations; and
· Prepare CPR under the JORC Code."
Every single one straight into Eurasia's big resource holding coffers arrrrrrrgggghhhhhhhhhhhhhhh
GLA
Eurasia have a 'rights treasure chest', brimming with exclusivity rights and also acquisition rights -
"also have a right to acquire Rosego's 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report ("CPR") on Nyud."
100% NYUD ownership coming right up Sir!
Koka Kola's all round!
GLA
Wardell Armstrong international's work being the key to 100% ownership -
"As further announced on 15 June 2021, Monchegorskoe LLC was created to hold the licence for the Nyud open pit PGM and battery metals deposit ("Nyud"). Eurasia's 100% subsidiary Yuksporskaya Mining Company / Yuksporskaya Gornaya Kompaniya ("YGK") has signed a notarised agreement with Rosgeo group company pursuant to which YGK will become a 75% shareholder in Monchegorskoe LLC after the licence for Nyud is transferred from Rosgeo to Monchegorskoe LLC. Pursuant to the terms of this agreement Eurasia, through YGK, will also have a right to acquire Rosego's 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report ("CPR") on Nyud.
Additional drilling has recently been completed on Nyud at Rosgeo's cost and Eurasia has engaged Wardell Armstrong International in relation to Nyud to among other things:
· Audit the quality assurance and quality control procedures;
· Review the block modelling and open pit optimisations; and
· Prepare CPR under the JORC Code."
Such a beautiful monopoly position to have. The plan is as clear as day at this stage!
Koka Kola's all round!
GLA
Buying was, buying is simple after the recent RNS.
Eurasia have the monopoly position on the whole PGM and battery metals complex at Monchegorsk. Rosgeo JV assets landing on the table as 100% owned after JORC etc -
"The Rosgeo Agreement provides that Eurasia acquires 75% equity stakes in each of the Additional Assets and Rosgeo will retain 25% equity stakes in the Additional Assets (being those companies holding relevant licenses for palladium, platinum, copper, nickel and cobalt projects outlined above). Eurasia also has a call option to acquire 25% from Rosgeo after completion of the reserves audit under the JORC Code. Any engagement with Rosgeo as a contractor in relation to the Additional Assets will be on an arm's length basis."
Acquisitions dear Watson, acquisitions!
GLA
Every acquisition takes the company resources forward by huge amounts -
"as we continue to develop the Company including the upcoming acquisitions of Nyud, Moroshkovoe and other significant Rosgeo JV PGM and battery metals open pit deposits."
2, 15, 40 . . . . . 3.4, 25.5, 68 etc Do not include the battery metals, Cobalt Copper and Nickel. They come on top of any Palladium equivalent figure.
The upgrade factor would correlate to an upgrade in those metals as well. When you understand that you understand just how undervalued Eurasia's current position actually is.
GLA
The same upgrade factor can potentially be applied to any given resource figures to date. Mining plan time in DFS has probably stayed consistent, the increase in production comes from the resource upgrade. There's simply more resources there by that factor.
2 X 1.7 = 3.4
15 X 1.7 = 25.5
40 X 1.7 = 68
Etc
GLA
Simply lovely.
This is going to blow the cobwebs off the main sail.
Here's an easy exercise anyone can do -
"· Updated results of block modelling and open pit optimisation have created the opportunity to increase phase one ("Phase One") annual ore production by 1.7 times (from 1Mtpa to 1.7m Mtpa) compared to the Russian Feasibility Study (the "FS") throughput."
$20m X 1.7 = $34m
The upgrade across Monchegorsk from DFS and JORC etc is clearly consistent -
"After receiving a more sizable offer, the Directors have decided to limit the size of the Private Placement relative to the offer to minimise shareholder dilution and at the same time place the Company in a stronger position."
They know exactly what they need to make the acquisitions.
Koka Kola's all round!
GLA
Settlement later today US time confirmed by company after hours or in the morning. JV purchase to be announced shortly after with significant increase in resources from that originally expected. My take anyway!
EUA can only purchase that license once JORC figures are done so that's next imo. Once those are published - and are hopefully good - an RNS announcing purchase of NYUD will be out. With luck the JORC figures are actually better than expected and the recent raise was indeed to acquire 100% of NYUD. That will well and truly set the cat among the proverbial pigeons.
It's simply in anticipation of the placing, when they land the BOD have their money to buy NYUD etc. It's just simple common sense.
The purchase of Nyud will arrive shortly after placing.
Looking at share total the shares are yet to hit market.
GLA