We would love to hear your thoughts about our site and services, please take our survey 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.
CB has already appeared to rule out the prospect of LC agreeing for JLP to provide funding for Star Zinc during his UK investors presentation.
Maybe LC will change his mind, but you need to remember that if we really need zinc ore to optimize the process at Kabwe, then GLR/Star Zinc are not the only source we can get it from. We will have options, as has already been indicated in the JLP RNSs that mention it.
Maybe Kalan, but a direct investment in a mining company would not be in line with the strategy to eliminate mining risks. Unlike BMR we do not strategically need a shareholding in Galileo. If Jubilee is going to help out Galileo at all with getting the Star Zinc mining up and running, an indirect "short term loan" through an advance payment in the off take agreement is more likely. The presentation is then much more palatable as well as the method of financing being of much lower risk. The advance payment would be presented as securing medium term high grade zinc ore supplies for Sable so that the overall unit cost of producing the zinc concentrate/metal can be significantly reduced when it is mixed with the upgraded Kabwe tailings.
Good to see an alternative view Jammer. How about JLP purchase 1.5 million quids worth of new GLR shares (33% ownership) and the cash is used to get Star Zinc up and producing? plenty of ways to skin a cat - as always the cat will be skinned in a way that benefits the CEO. How about promise and promise and raise and spend and keep taking the salary for another couple of years - that could happen too - seen it quite a few times. Place your bets and spin the wheel.
Looks like there was a large seller of Galileo yesterday when there was a lot of liquidity. Perhaps some of the shares held by BMR? If so where have we seen that before? Placing theory at the moment may not be quite on the money. Probably still to come in about 3 months time after news has been released of a processing and offtake agreement with Jubilee, and perhaps by then a successful small scale licence application. With rose tinted spectacles for Galileo shareholders a big dilutive placing might be avoided if Jubilee in particular through offtake agreement, and maybe mining contractor to secure contract, chip in to get the Star Zinc operation up and running. Or better still news of a sale of the Nevada gold asset comes through.
Hopefully they'll just get on with applying for the licence now rather than telling everyone that they intend to do it. But the RNS seems to have been received like a lead balloon (or rather a zinc balloon in their case), so expecting to see CBs rare earth RNS repeated in the near future, lol.
I think JLP should steer well clear of mining Tiger - there's plenty of profit in the waste without taking risks.
Enjoying watching Colin's performance with GLR - he is working his magic - spinning the story like a good un.
Just released an RNS that repeats what he announced in a previous RNS - the JORC is still inferred (i.e. of poor reliability) and he still hasn't applied for a mining licence yet and he hasn't stated where the cash is coming from to get it all up and running.
The 'investors', there have done a good job hyping it up and Colin knows that this RNS will get them more excited despite it announcing that nothing has happened for the past 2 to 3 months.
Share price was too low for Colin to get his placing away but it must be getting close now. Raise 1.5 million to finance through to production perhaps? Needs to get on with that application or Kabwe will be well underway before the first sod is cut at Star Zinc. Good luck to all involved - interested onlooker!
TBTT - quite right, we've already got one of CBs white elephants in our portfolio with Tjate, we don't need to add a second.
And has anyone else noticed the target projects map on the JLP website has changed?
Previously we had lines pointing to project targets in Brazil, Argentina x 2 (or possibly 1 in Paraguay), Australia and Tasmania
The new map shows USA, Brazil, Argentina x1, Australia and Indonesia
So new project targets identified in USA and Indonesia, and targets ruled out in Argentina/Paraguay and Tasmania.
Hi Moneyhawk!
I agree 100%. If Jubilee were ever going to get involved with mining, they would have gone for Star Zinc and Kashi'tu. Star Zinc is a really good asset with a short and simple pathway to production via processing at Sable. If Leon passed on that, that means he really does have no interest in getting involved in digging stuff out of the ground.
I'd be gobsmacked if Jubilee are interested in a wild goose chase after copper in the high Andes.
When Leon stated he wanted to adopt a low risk strategy it never occured to me he meant low risk of making a decent profit
The chile project is a non starter for Jlp, it doesn’t fit with LCs strategy of low risk and not mining. We most likely could have picked up BMRs assets that ended up with GLR, but didn’t because they involve mining.
They won't buy BMR. They won't want the Copper asset in Chile.
JLP have to push BMR to a new company that has no liabilities then they can buy for a song. If the new company is legally liability free JLP will take it out for less than 2 m and get a play in chile, Whole new continent no royalty JLP win win
Sorry for BMR shareholders, as after Jubilee had bought their 29% share in BMR , the delisting must have come as a huge surprise. I would be amazed if Jubilee now pull the rug out from ABs feet, although at face value it might be the best thing for BMR shareholders. Surely AB and Jubilee have agreed what is going to happen to him post Friday in exchange for their support. Jubilee could have removed him if they had wanted to a while ago. at an EGM.Jubilee probably also had a good legal case against him for concealing the letter about the potential removal of the licence when they invested in BMR. In my opinion it appears he has been a useful puppet for them.
Yeah it was part of the deal of JLP holding above 15% in BMR, or something along those lines. Either JLP are going to be diluted below that level, or CB has to be re-elected on the board because it's a new company.
Possibly JLP would like all to think they will support. BMR board think they have a supporter and JLP pulls the rug causing bmr to be broken up and JLP selects which assets they want to buy and if they have to pay up to 2m will get a gem. Share holders in bmr will get little after expenses. Only when this is over will JLP get a reset of their SP.If I get anything back from BMR it is a bonus
He will be! The Jubilee holding will surely ensure all of the resolutions go through. It will be a huge surprise if they do not. Could be good theatre at the AGM.
Wasn't part of the BMR/JLP deal that JLP are given a seat on the BMR board? CB took that seat, so just wondering what happens if CB doesn't get re-elected on the resolution vote?
There's a good chance JLP will take part in the BMR placing. They might want to retain a 29% holding so they maintain control over the company. Bird wants to be elected back onto the board. I doubt JLP will be able to vote on that resolution, it could be seen as conflict of interest with him being on the board of JLP. Good luck to him, but BMR shareholders don't even want the board we've currently got, let alone Bird.
I am bemused as to why JLP are voting for the resolutions as well. If things are as dire as Borrelli is saying then BMR could go for a next to nothing - but because JLP have not acquired 100% ownership of EML there may then be doubt of how likely they are to be able to get that licence. They probably still will, BMR being sold just opens up another can of worms. I’m sure ZG would be happy to see BMR completely removed from any benefit at Kabwe.
If memory serves me well, I believe the SML licence comes up for renewal in October 2020
From what I've seen of the BMR proposal it doesn't appear to be a good deal for BMR shareholders. It looks the main purpose is to get BMR to pay for exploration at one of CBs other projects at the expense of BMR shareholders, and CBs other company (Revelo) will have extra BMR shares for free every time BMR do a placing to keep their shareholding at 20%.
I should imagine that once its all over our 29% will be reduced to a few % if we can't sell off the shares quickly.
Wouldn't it be good if for once Jubilee explained what they now intend to do with a shareholders' asset, namely the current 29% holding in BMR. Presumably they will be voting at this Friday's AGM in support of the BMR resolutions so they can apply for a listing. But why? The Jubilee holding is going to be diluted enormously through a placing on relisting and the royalty when it is available will be used as an asset to help fund a risky copper venture in Chile. An asset acquired by the way from another company our own Colin Bird is a director of! I hope the Jubilee Board has not been unduly influenced! Why would it not be better to just liquidate BMR at the appropriate time, after its direct interests in Zambia have ceased. Wouldn't Jubilee get a better return eventually? On relisting it will have little chance to sell its holding unless it is prepared to accept a massive discount to the very likely much reduced market price (at the time of suspension) AND an II or very wealthy investor is prepared to buy.
Quite right Moneyhawk. Jubilee has not yet exercised its option to purchase Enviro Mining Ltd (EM) EM has a wholly owned subsidiary Enviro Processing Ltd(EPL), which owns both the large scale and small scale mining licences. The Zambian authorities first need to approve the transfer of the large scale mining licence from EPL to Galileo, who want it to develop the Ka****u zinc prospect. Jubilee has no interest in the large scale licence, but would acquire it with all of its obligations if they proceeded with their option before everything has been sorted out with Galileo. Once Galileo's transaction is complete Jubilee can then exercise their option. BMR will then have no direct further interest in Zambia, They will only have the beneficial interest in Kabwe through the royalty.
Another issue that is no doubt being discussed with the Zambian authorities is that both of the existing licences run out in 2020.Hopefully this issue will be resolved at the same time as the licence transfers.
We're all assuming that it will be a royalty, but unless I've missed something its not been confirmed yet that we have taken 100% ownership of BMRs subsidiary to turn their share into a royalty.
We had 24 months from last August to activate the option of increasing our 87.5% share to 100%, which was subject to regulatory approval, so 12 months left to do it.
But we've purchased sable since then and got the regulatory approval for that, so whats the hold up on Kabwe?
Are we waiting for the 24 months to expire and then acquire BMRs remaining share on different terms and without a royalty?
The only reason BMR are being re-listed is so that JLP can liquidate their holding in BMR at some point. How that happens I don’t exactly know, but as the largest significant shareholder they are pulling the strings, even if they sell their holding at say at average of 0.5p that’s c. £486k back in the coffers also meaning they obtained Kabwe for £14k cash and a get to be agreed upon Royalty. Given the rumours and numbers I’ve heard AB considering for the Royalty I don’t think the idea of JLP seeking their shares in return for a a few % points of the royalty is out of the question, of the 11% they are already entitled to 3.19% of it given their 29% holding.
Bring,
Same here. On the JLP board, what I was referring to was not that the BMR assets were worthless to BMR shareholders, what I was clumsily putting across was that the 29% was simply part of the price to buy into Kabwe. I don't think that JLP have any long term designs on BMR or their assets and couldn't care less whether BMR survives or thrives.