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I think it would have been tough to renegotiate the JV with IAMG . Ultimately IAMG are the right partner for that area given their spend going in and let's face it the under spend was fairly negligible @ $172,000 out of 3 yrs. I think renegotiating would have been time consuming and costly in legal fees. Lots of mitigating factors COVID etc, look at the delay in our Assays. SO it probably would have left a bad taste with the partner.
I think the reporting of the ISSUE was badly handled by ORR. Supposedly IAMG report every month with ORR on progress for the JV. Well if you are getting a progress report every month then this underspend should be visible and logged as a risk in terms of not finishing the work and dealt with in advance. ORR seemed to wait until it became an ISSUE and then had to deal with it after the fact which wasn't great. Ultimately the best they wanted in Senegal was to force the hand of IAMG a bit and go do their own drilling, however with Cameroon being the love child at this time can they really afford to do excavation work in multiple places. At least I was pleased to see concurrent drilling undertaken in Senegal by IAMG.
The JV will be interesting as IAMG can earn up to 71% so that is a decent Royalty for ORR if they get a working resource going there. I definitely wonder what will happen with FARE currently there is no option to split the licence so IAMG may have to develop that or leave it sitting for a while. Smart thing would be to negotiate with the GOVT and split the licence to sell FARE off if IAMG didn't want to develop it as it is not trackable to BOTO. Possible option to add a bit more value. That said if the grades are good IAMG might wish to hold onto it just depends on how big their outlay is at BOTO. Production costs a heck of a lot to get going.
Pixar - tend to agree with what you have stated there. Maybe there was an opportunity to at least tighten up on the next stages of the JV given the underspend, but I guess ORR is the minnow and not negotiating from a position of strength. I think an outright sale of at least the standalone prospect to IAG is very much on the cards and would probably suit both parties. Unless they realise monies from the legacy assets (unlikely?), ORR will needs funds to explore the huge central Cameroon licences, as well as further exploration at Bibemi.
Legalwolf - yeah it seems strange that he didn’t, as re-negotiations appeared to have been an opportunity. But then maybe it’s in their interest not to rock the boat with a bigger company? It sounded to me like he wants to sell off Senala to fund drilling in Cameroon, up until the point where he can package that up to sell on.
One thing I did wonder about was whether ORR gave any thought to re-negotiating the JV agreement, when IAG did not meet their spending requirements? After all, TL has said that the JV was already agreed before he arrived at ORR, maybe implying that he would have preferred different terms.
Hunni, I reckon IAM Gold will have to pay Tim & co quite a bit for him to let go of Senala fully. There’s a s**t tonne of gold there and Tim seems annoyed that he didn’t join in time to re-work the agreement.
@pixar it did look like they posted a picture of a mass grave.
However i Can see TL still laughing in that picture from the side view so I am openly optimistic!
Hunni - hahaha Bob is saying ‘this is where our investors are gonna lynch us’!
I’m sure it’s all a coincidence, but I’m not sure why IAM Gold aren’t being open about building a mine? Might have to sneak onto an IAM Gold chat board ??
@Pixar that's quite funny, I was thinking the same the other day, could this be ripe for a takeover. The way of the world and all of that. Knowing my luck it would go through at around 1p. However to be fair. I don't think the BOD would let that happen, we know speculatively Senegal should have us around 1.4p when they put that resource on it at least. Then the other assets even if Cameroon was a right off. But Cameroon has gold so it has to have some value even if Bonanza grades aren't coming out of the ground "yet" there is still a "district" sized set of licences to look over. After all the world is running out of virgin ground to prospect over! Djibouti also @12% I think that could be turned into something decent.
The ORR guys were posting on Linkedin today, they posted a pitcure of their strategy , it did make me laugh I was going to caption it. If anyone has linkedin here is the link I don't know how to share prictures....
https://www.linkedin.com/company/oriole-resources-plc/posts/?feedView=all
My caption was going to be "Right how do we break this next batch of news" or Tim saying "Bob, can you do the next Crux interview"
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