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Hello from the Bacanora Board,
We have launched an email campaign against this Ganfeng takeover.
We want you involved. Thus far, we have over 100 people on board - We need more.
If you believe (like we do) that this takeover is bad for both KDNC and BCN, please email me on:
SaveBCN@protonmail.com
We have a list of key stakeholder email addresses, and draft emails. You can literally copy and paste to send the emails out.
(Apologies for posting on your board!)
..... explain in plain language why being a 30%. JV partner to Ganfeng who have huge experience, ambition & pockets to match is not preferable to being partnered with a company that requires a lot of debt to progress & has dragged it's heels for years... GFL owning the balance of the Sonora JV's might mean KDNC can agree a sale of their 30% for good value without any concerns about how payment will be achieved .... maybe even negotiate a royalty as well .... at the least it appears construction, extraction & processing will be bigger & quicker under GFL..... as a KDNC only shareholdetr why should I be concerned about a takeover of BCN by GFL ... I'm only seeing an upside IMO..... But I'm prepared to listen to a reasoned argument to the contrary,..... after all it's not like KDNC & BCN have been the best of bed fellows over the years is it ..... Perhaps that £1 a share offer KDNC made some years ago looks a little more attractive now to BCN shareholders though.....
I've not been in BCN long enough to know of issues between BCN and Cadence shareholders.
But what I can tell you is this:
What makes you so sure you'll get a great deal, when it's your turn?
Current section can be mined for over a decade.
There's more to Sonora than the part KDNC own?
Why would Ganfeng need to make a big offer, when they can mine other areas, or even other countries? They own and part own mines all over the world - They could treat it as an optionality play.
Strange bedfellows indeed, but if you don't wish to see Cadence at the mercy of Ganfeng, you'd do well to start now.
Unless of course, you're going to somehow tell me it'll all be alright when it's your turn?
The only other point I'd like to make, is Ganfeng don't want BCN involved. At all. - Why would they want Cadence?
Does Cadence bring anything to the table? Money? Ganfeng has plenty of that.
What's stopping Ganfeng from timing the construction to make it difficult for Cadence to raise their share of the CAPEX? I'm not saying Cadence aren't capable - I AM however, saying that based on current form, Ganfeng will do what they can to make it difficult for Cadence.
That's why it's important you help us make a stand - We're all PI's trying for ourselves, and our families.
But if you wish to make it me vs you, PI vs PI, well I genuinely hope you're right, and I'm wrong.
We're seeing the true colours of Ganfeng as of this very moment.
Well said Ban , I agree .
Barksy
Wow you’re an early bird today.!
Yes :) early bird these days ! Feel our fortunes and strengths are changing now on Cadence, positive news from all our assets .
Dee ... It has nothing to do with PI v PI or any of the history, it's all about economics & opportunity.... I am familiar with a lot of BCN shareholders, many of them are also invested in KDNC & many were here first & sold up to buy into BCN instead.
As for history I was in this share before the first exploratory drills were put into the JV areas some 8 years so have nailed the history in Spades & waited sufficiently for some action as it were.
But back to point which for me is the economics & opportunity:
BCN, due to their own position, currently plan a 35ktpa to 50ktpa operation which takes feedstock from a small portion of JV1 in years 6/7 of the plan ... because that's when the economics of exploiting LV only switch to the JV lands - they're not doing us any favours it's just business.
GFL plan up to a 5 fold increase in that (thanks NEWS) .... so when do you think the JV areas will come into play then (based on economics not some romantic notion of non existent cameraderie between different co's)
you're correct that GFL won't do KDNC any favours but nor will BCN they both have shareholdetr & people to answer to & right now I'm seeing (& always have) GFL as a better opportunity for an earlier sale of the JV's for good value than BCN & failing that exploitation of the JV areas much sooner as the economics will demand it .... either works for me but I reckon GFL will want us out of the picture sooner rather than later which puts us in a better/stronger position with GFL than we've ever been with BCN.
My opinions my views - nothing you've indicated so far changes that because you're position is based on sentiment & expectation instead of the economics & reality.
# your .... not you're.... haste & autocorrect are also poor bedfellows :-))
Morning most...
caught between the devil and the deep blue sea... we have a vested interest in sonora... and by all accounts... the ganfeng deal will see the value in that increase dramatically... whether we can realise better value than bcn have... is really down to our bod and how we fit into the future plans for sonora...
I agree TC ... it is very much down to our BoD .... KM indicated a value of circa $200M for our 30% JV's in Sonora ... that now could materialise sooner rather than later & provide us with opportunities for Amapa & Oz assets we don't currently have without further debt &/or dilution &/or further asset sales.
Even if we get 3/4 of that value in the next year or two I'd be OK with it & consider that a better outcome than the thought of waiting another 6/7 years when the economics, politics & technology all have chances of change in the interim... nope for me it's a thumbs up for the Ganfeng buy out of BCN .... if the shareholders there can squeeze some more pennies out of GFL all well & good for them ... But I won't lose any sleep over it if they can't &:look forward to what GFL come up with in regard to the JV's... at least something will happen quicker with GFL than it was ever likely to with BCN running it & personally for me it can't come soon enough even if it doesn't live up to all our expectations it's been far too long coming in regard to Sonora for me & I'd be happy to see a deal done & across the line whether by sale or joint exploitation.
If that doesn't chime with BCN shareholders - so be it as I said I won't lose any sleep ... Economics trumps sentiment in business.
@Bannor
Looking at Ganfeng's treatment of BCN, what makes you think our 30% JV will achieve even 3/4 of the $200M? Although I am a shareholder of both BCN and KDNC, I think KDNC-only shareholders should be concerned of the current situation too, because if the current deal goes through as-is, it will set a precedent and therefore KDNC's share of Sonora might not achieve the desired outcome/value. And that is if an offer from Ganfeng even comes through.
I think a superior BCN offer will benefit both KDNC and BCN shareholders - currently, its a lose-lose situation.
a bird in the hand is worth 2 in the bush.
"Economics trumps sentiment in business" @Bannor, so very true.
That is why I would not expect any favours from either BCN or Gangfeng for our jv.
I understand there is no mining agreements for either jv [inc Pilabara] so we are not in a
strong position to negotiate future development----Dallasdaz confrm?
Therefore I would expect Gangfeng to play "hardball" and either develop elsewhere [not
likely imv] or propose that we contribute to development costs or at best an "earn in"
agreement--with costs out of our control. Thus I feel we are strapped in to probable
difficult period of negotiation.
Roll on Amapa creditor agreement --at least we have input here.
Particularly when you are about to buy into a big mine
depends how robust the jv’s are... but if ganfeng want to brush the dust off our 70ktpa scoping study... and asked us to contribute to the development of that... why wouldn’t we ffs... that’s what we wanted from the start...
@tomcat_14 Agreed, depends what is in jv agreement, but I understood [as stated by KM at an AGM]
that this was very loosely worded.
Even if we can develop as per scoping study, with a market cap circa £45m I would see
funding difficulties for our minority stake to get development costs.
there could be other reasons why ganfeng might need a 20% jv partner... rather than owning 100% sonora outright...
That is correct @Ivybush, the current JV agreements are for exploration only, and as a minority partner we effectively have no say in that.
We have been trying to get a Mining JV agreement off BCN for years, will Ganfeng give us one?
Without a mining JV agreement we could end up owning a 30% parcel of land with no means to mine and process it.
Be interesting to see how Ganfeng go about this.
As Bannor says, Economics trumps sentiment:
Mexilit is to initially have three directors, all of whom shall be nominees of the
Company. On completion of the REM Agreement 1 Stage 3 Option, REM Mexico will
be entitled to nominate an additional director to the board of Mexilit;
• the board of Mexilit is responsible for the day to day management of Mexilit and the
REM JV1 Concessions including management of the exploration and development of
the REM JV1 Concessions;
• shareholder approval (from the holders of 2/3 of the issued shares) is required in certain
circumstances including on the issue or grant of rights in shares, borrowing, granting
security, sale or disposal of any of the REM JV1 Concessions;
• if Mexilit issues a cash call notice to its shareholders, each shareholder shall be obliged
to contribute its proportionate amount, failing which its interest may be diluted;
• shares cannot be transferred or charged except with the approval of the board;
• each party has a right of first refusal in respect of the others’ Mexilit shares; and
• drag-along and tag-along rights apply between the parties in respect of any proposed
sale of interests to a third party
Those are some bullet points regarding Mexilit.
I'd pay attention to the cash-call, and the the 2/3rds requirement.
What's stopping Ganfeng from making it near enough impossible for Cadence to raise finance? Business trumps sentiment, yet Ganfeng are proving their ruthlessness.
It's entirely up to you if you disagree, but the response I'm receiving via email shows there are many that disagree.
We spent a lot of money independently having those scoping studies done .... we know what we’ve got ....
I'd be just as happy with GFL buying us out as I would anything else .... One thing I don't want is another 5/6 years of speculation & pondering what plans BCN might or might not have for the JV's & our involvement in it , we've suffered enough dilly dallying by Secker & co ..... GFL offered an alternative from day one IMO & I'm now eager to see how that plays out ... whether for better or worse I don't care because something in the next year or two is far more preferable to me than waiting for BCN to get their fingers out & wondering what shape that will take ... I had planned a possible exit after we took 27% of Amapa but if GFL grab BCN I might wait for a year or two & see how Sonora plays out instead ...
All good for me & an outcome now either way within the window I planned to remain invested 9 years here is more than enough .....
and ganfeng would own 70% of the same piece of land... the jv has incumbent rights to proceed to the mining stage... that aren’t one sided...
& that's 9 years invested here as time already served... I had thought Amapa could see me out within 10 but GFL just cracked open a possible extension....
dee... the chances are... we won’t need a dfs...