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Hi Tiger you are right, I didn't read that correctly ;-)
Kashi'tu is located in the Kabwe Mining Licence , which was owned by EPL
well as per the placing RNS , the money is for " including an application and related environmental and licence transfer activities for a small-scale mining permit for Star Zinc and exploration on Kashi'tu. "
- licences transfer from exploration to mining Star Zinc
- possibly an environmental approval for the above
- exploratory application for Kashi'itu
I am sure CB will enlighten us someday....
Hi Zebediah!
I don't think an exploration licence is required for Kashi'tu - it falls within the full large scale mining licence for Kabwe, which already exists, but which needs to be renewed later this year.
yes I agree . Maybe CB is getting an exploratory licence for Kashatu as well.
In theory they dont need another placing . Overheads should be just an office right. No major expenses on the table (maybe under, who knows). They could even ride a out a few more months
But the SP is drifting . Maybe its just the delay
yeah 27000 ZMW= GBP 143.327 official fees - thats really for a small scale two bit local operation.
I bet there are 'points' being raised about classification and paperwork
Interesting wording regarding the placing . Does a small scale licence really cost that much?
"The Company intends to use the proceeds of the Placing for general working capital towards advancing its Star Zinc and Ka****u projects ("the Projects") in Zambia, including an application and related environmental and licence transfer activities for a small-scale mining permit for Star Zinc and exploration on Ka****u. "
"Star Zinc Project in Zambia funded to progress work including producing an independent ore resource estimate, block modelling/preliminary pit design, and preparation for submission of a small-scale mining permit application"
The Company raised £500k on 18/10/19, before expenses ( say 10% expenses) leaves £450k
How much are they spending? Whats CB doing other than chasing up the licence and doing his spreadsheets .
Oiltap - I like your glass always full approach. Candid is a little more well candid. Given Candid's stance - how would shareholders come out of it. Well worse case - they double the shares in issue to get £2 million in. We get a licence, a signed agreement and contractors sorted - the market cap would at least quadruple which means the shareholders double their money.
In Oiltaps scenario - a quadrupling of market cap would quadruple the share price - some are predicting much more than the market cap quadrupling.
We need licence - waiting, and also agreement with JLP - now looking like a forgone conclusion, and contractors - should be fairly straight forward.
So it looks like a straight bet on the licence which should deliver great returns with or without a cash raise. if a cash raise was imminent I would not hold until it was out of the way (which is why I urged caution previously) but the company should be financed easily to the point of getting a licence which is imminent.
The usual caution should be applied to AIM - there will always be lots we do not know. Only betting what I can afford to lose.
Given that JLP have confirmed that Kabwe zinc is on track:
“The construction of the zinc refinery circuit has progressed well and is on track to produce the first zinc concentrate during Q2 2020“
How soon will they be needing zinc ore feed from Star? Lets’s say May 2020. This is only 3-4 months away.
The Small scale mining licence takes a max of 90 days to get a decision so it should be imminent. Once this is in place I think the offtake agreement will follow swiftly afterwards and the crushing/trucking operations can begin with contractors.
I have a feeling that one more placing might be on it’s way for the mining activities, unless the offtake agreement offers a cash sum towards this.
In any case things are about to happen fairly soon and they will be transformational for GLR.
"Excellent info chaps. Thanks for sharing. I think JLP will 2 or 3 bag from here in the next 18 months. GLR could 4 or 5 bag from here in 18 months.
I haven't bought any GLR yet though."
My post from November 2019 - I haven't changed my mind - back then I was waiting for the new shares to be issued from GLR placing and the price to fall to close to .4p - it has taken a long time. Slipped a bit more today and if it goes closer to .4p I will add some more.
My approach is consistent - choose a share - choose an entry point and wait for it. If the sp rises quickly or new information comes to light then I adjust my holding and may even sell up.
If GLR rises suddenly on no news I will sell, if it rises because there is a licence then I will hold.
Buying a share and staying loyal no matter what the price or news is plain stupidity.
" I am sceptical over the prospects here - this is a typical Colin opportunistic punt "
Mmm does that look like I am ramping this share - no. I am merely gambling on the low market cap and the change in what I know from repeated updates by JLP which all point to a stronger and stronger hint that Star Zinc will be processed at Kabwe in the near term. There is still a chance that the licence will be refused and also that there will be another placing which is why I wouldn't buy at .6p+ when you were ramping it and then selling up.
As for JLP - the future looks great but things have changed there in the past 2 or 3 months - a placing when they could have used debt and a change of emphasis towards 3rd party material having a bigger part to play at Kabwe and also the collapse of the chrome price. The rise in PGM prices will offset these IMO but at the moment the next set of results are months away.
Things change and when they do you should re-asses. It wasn't me singing about GLR at .6p and .7p and then dumping and running.
Betting here that we will have licence, signed agreement with JLP or contractual information. Failing any of them, the next pump and dump is approaching - so the odds are in favour of a GLR rise soon - whatever the eventual outcome.
Good Afternoon TBTT
I'll let you have my pace notes, just as soon as Alan learns some manners.
Alan -p for ever and a day to have slammed Bird in the hope of getting GLR lower, all the time while being invested in and ramping another of his company's, namely Jubilee.
Then you sell out of that and ...... start ramping Galileo, while accusing others being rampers.
Talk about 'projection', Blimey!
Pot - Kettle - Black
The potential problem you allude to would make GLR a much better prospect as a source of Zinc for a refinery running only on 3rd party material.
Are you always just going to take a contrary position Minor Miner or is your little group not ready to ramp this one yet?
Hi MinorMiner!
You're gonna have to give me a clue here.
The Kabwe small scale licence (i.e. the tailings) is still owned by EPL, a BMR subsidiary, no? JLP have the right to buy it out and pay BMR a royalty instead, no? That process seems to be moving very slowly, but I can't see how that is a problem for GLR. In fact, rather the opposite - JLP will need zinc ore for their new processing line at Sable (due Q2) - the higher grade the better, of course. And since JLP have postponed the proposed vanadium line, it doesn't matter anymore that Star Zinc ore has almost no vanadium content.
That's all good for GLR, isn't it? That is, as long as GLR can get the small scale mining licence they need and set up the quarrying(*) and trucking operation required.
As for Kashi'tu, that comes under the Kabwe large scale mining licence, now held by GLR, and which is due for renewal this autumn, doesn't it? It's got huge long term potential. But it's not an immediate issue, is it?
So what's the obvious thing I've missed? Genuinely puzzled by your post.
(*) I refuse to call Star Zinc mining. Mining is hard. Mining is dangerous. It doesn't involve just digging high grade ore out of the ground with a 1:1 strip ratio. That's way too easy to be called mining.
I suppose all share buying is a gamble to differing degrees, but I am happy about the potential with Galileo.
Particularly when I re-read the following extract from a recent GLR RNS: -
Ka****u Zinc is some 6 km from Jubilee Metals Group plc 's ("JMG") Kabwe zinc refinery plant, which JMG is developing to process its own willemite-bearing tailings and so potentially available to treat ore as well from Star Zinc
· The directors believe, that Ka****u Zinc has similar mineralisation to Star Zinc and future potential "ore" from Ka****u could supplement that from Star Zinc
· Historically, vanadium has been identified on Ka****u Zinc.
· Ka****u Zinc licence area is bigger than Star Zinc and is therefore believed to have the potential for a much larger tonnage based on interpretation of historical exploration on the prospect
Blimey. Tigger and Alan K 'knowingly' chatting in stage whispers, yet both having missed the obvious.
Checking the status of the legal title to Kabwe is a smart move and perhaps key to timings - see BMR resolution.
After that Galileo is a huge opportunity (finally), but you both do need to read your history first.
As an example of what COULD happen here, look at what happened to Katoro Gold (KAT) this afternoon - a 200% rise in a few hours.
If Star Zinc were announced all at once (licence and offtake), this would be a 2m mcap company announcing a $60m NPV project with almost no capex required. The share price would go ballistic.
I think we are on the same page of the hymn book regarding JLP and GJR tiger - be wary of the trades that are reported - there is more going on than is reported - I bought £3000 worth yesterday and there is no sign of it on Hargreaves Lansdown or on here - I think this has been discussed before.
I agree that this share is basically a gamble. But I think the odds are in our favour. I don't trust Colin, either. But he is shrewd and self-interested. As long as he can deliver the licence for Star Zinc, I think this will work out. And, since the mcap here is so low, the rewards for holders will be very good.
All my other investments are in profit-making companies. This is my only "punt"!
Hi Tiger - I am sceptical over the prospects here - this is a typical Colin opportunistic punt - he said as much himself. As with JLP you have to read between the lines to seek the truth. I read loud and clear in the last update that things had changed regarding Kabwe or at least the plan may be different from what PIs are expecting. The reliance on 3rd party materials seemed to be flagged up when previously it always seemed that 3rd party material was an optional sweetener.
One thing is for sure - Colin will be a sure fire winner if Star Zinc becomes elevated on the JLP list of priorities. Only he knows the legal position and complexities of the deals done regarding Star Zinc, BMR and JLP. he has fingers in all 3 pies. Trust - no. Oportunistic punt - yes.
The sp will rise on a licence, a signed link to JLP or a buy out by JLP . It will fall if none of the above happens. Fall to what say 0.25p but a potential rise to 1p + on just one of the events. been waiting for the sp to fall - didn't want to pay above .5p for it - paid .465p I think - could go a bit lower but the ramp brigade must be coming along soon - I see MinorMiner has begun to post again. So .65p to .7p is possible just on renewed speculation and a very small amount of buying.
Will get back into JLP in the fullness of time.
HI Kalan!
Yes, I also noticed the change in emphasis in JLP's communications.
I wonder - reading between the lines - if they are not having legal / licensing problems with the Kabwe dumps material. That would explain the delay of the vanadium circuit (as much as the vanadium price slump), and it would also explain the long silence from both JLP and BMR over the status of the Kabwe royalty.
Whatever. As regards GLR, the news is good. Q2 2020 forecast completion of the zinc circuit at Sable, and willingness to work with 3rd party ore suppliers (which I am sure is code for GLR / Star Zinc).
It seems to me that we are just waiting for the Star Zinc small scale mining license here, and then it will be all systems go. In the meantime, there is always hope that the Glenover mining licence will drop as well.
JLP seem to have moved their stance a little - 3rd party material for sable has been elevated in the last couple of communications. Looks like Colin's opportunism is holding sway. next news here should be something on the licence to mine - according to my calculations it should be due any time now - so had a little punt that it will be here before the end of April and before any more cash is required. .65p to .7p is easily possible on speculation and over 1p on granting of a licence. Pure gamble on Colin delivering - GLA DYOR.