Member Info for Broxburn68

Hello Paul! Just had a bowl of chunky Gazpacho and it brought back memories of the BKY board of yore :) Hope you're doing well!

From the Spanish press today. There's little detail; still looking a bit speculative IMHO.

https://cincodias.elpais.com/cincodias/2022/03/24/mercados/1648113582_200792.html

CAW1 - Kola Nickel LLC is registered in Russia.

https://www.rusprofile.ru/id/1215100006956

EUA engaged Wardell Armstrong in April "for several comprehensive tasks including JORC resource audits which are almost complete and are expected to be announced shortly", per the interim report RNS dated 30th September 2021.

WA's industry credentials are beyond reproach.

The main issue here, and to settle some of the discussion points, would be for EUA to make this JORC report publicly available *IN FULL*. This may well happen shortly, but failure to do so should raise a few questions in investors' rationale of the project.

"The JORC Code sets out the minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code is fundamental to the way capital markets work in respect to reporting mineral projects. These reports should provide investors with a level of confidence that appropriate consideration has been taken when assessing the viability of a project.

Here are three ways that a Public Report written in accordance with the JORC Code helps manage risk for both investors and mining companies, based on the Code’s three governing principles “Transparency, Materiality and Competence”:

1. Transparency
Transparency means that the reader of the Public Report is provided with sufficient information and the presentation is clear and unambiguous. A reader should be able to understand the report and not be misled by the information or by omission of material information.

2. Materiality
Materiality requires that a Public Report contains all the relevant information that investors and their professional advisers would reasonably require, and reasonably expect to find in the report, for the purpose of making a reasoned and balanced judgement on the project.

3. Competence
Competence requires that the Public Report be based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics (the Competent Person).

I'm sure all shareholders await a full update.

This document from Clifford Chance from 2020 is probably the clearest guide with regard to foreign investment in strategic subsoil reserves I have found, which includes PGM deposits. The original law was passed in 2008 and established a procedure for granting foreign investors access to such industries. The flowchart on pp3 of the document is particularly useful.

The document outlines the notification procedures which must be made to the authorities where foreign investment is involved in strategic assets. It shows that it is explicitly prohibited for a foreign state or international organisation to have greater than 25% of controlling rights [ownership] of these assets.

There are also some informative case studies contained here; it's a complex area.

https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2020/05/2005_Client%20Briefing%20-%20A%20Legal%20Overview%20of%20Foreign%20Investment%20in%20Russia's%20Strategic%20Sectors.pdf

Re Fedorova Ownership:

Buyers - Rostec and Oleg Seleznev.

According to SPARK, 74.9% of Fedorovo Holding is owned by Oleg Seleznev, who has been on the board of directors of the Chelyabinsk Tube Rolling Plant (ChTPZ) for at least 15 years - since April 2005. Seleznev did not get into the new board of directors of ChTPZ, elected in February 2020. But the beneficiary of the controlling stake and partner of Rostec [owns 25.1%] according to a source familiar with the new owners of Fedorova tundra, may be Seleznev's former employer - the owner of ChTPZ Andrey Komarov, whose fortune was estimated by Forbes at $550 million. According to RBC's interlocutor, the millionaire is interested in gold and platinoids and a year ago he “hired a specialist for this area” (who this is, the source of RBC does not specify). But the representative of ChTPZ denied information about Komarov's participation in the project. Seleznyov himself could not be contacted.

https://www.rbc.ru/business/15/05/2020/5ebd49a99a7947123b2e6937

Komarov would be one of the stronger candidates to be the "interested party" in EUA IMO however.

Update on Volchetundra below from MINEX Russia 2021:

Murmansk. October 12. INTERFAX - NORTH-WEST - Severny Palladium (Chita) is conducting geological exploration of the Volch'i tundra and Elk tundra deposits in the Murmansk region in search of platinum group metals (PGM), Interfax was told in the press service of the deputy governor of the Arctic Circle Olga Kuznetsova.

"Currently, within the framework of these licenses, a geological study is being carried out in order to search for and evaluate platinoids and associated components in these subsoil areas," said a spokesman for the infrastructure ".

Earlier, Orsu and Azarga exploration director Alexander Yakubchuk, speaking at the Minex Russia 2021 mining and geological forum, said that a team of specialists from Orsu Metals and Azarga Metals, as part of a "private project", could engage in an MPG project on the Kola Peninsula.

“We have just taken a new license for platinoids on the Kola Peninsula. And this will probably be a new story in the future,” Yakubchuk said.

It is impossible to draw a conclusion from Yakubchuk's statements which project is being discussed.

However, last year Sergey Stefanovich, the ex-CEO of Azarga, now the managing director and a major shareholder of Orsu, jointly with partners founded the Northern Palladium company (now its direct shareholder is the Canadian Northern Palladium Ventures Inc.).

According to the analytical system "SPARK-Interfax", the company "Northern Palladium" last year received a license for geological exploration of the Losey tundra area in the Kola region of the Murmansk region, and in the summer of this year - the area of ??the Wolf tundra. Both sites are promising for platinoids. Their total area is 155 sq. km.

Azarga and Orsu are traded in Toronto. In the companies, not only the Director of Geology, but also the CFO and the Corporate Secretary work in comparable positions. The boards of directors of both companies include ex-manager of Onexim, Vladimir Pakhomov.

Stefanovich is a manager from Mikhail Prokhorov's team during the 2000s. At one time he was the head of the strategic development and international projects department of Norilsk Nickel and represented the company on the board of directors of Gold Fields. Then, when the Onexim holding appeared as a result of the division of the assets of Vladimir Potanin and Prokhorov, he was its investment director.

https://www.interfax-russia.ru/northwest/news/chitinskiy-severnyy-palladiy-vedet-poiski-platinoidov-v-volchih-i-losevyh-tundrah-murmanskoy-oblasti-vlasti

A possibility for Monday might be that EUA are planning a secondary listing on the Moscow Stock Exchange. Their rationale behind this may be to tap into the growing retail investor market over there and "increase liquidity" of the stock. Being part of the MSCI Russia index would be another potential benefit.

The requirement to produce a prospectus, as is the case in many other exchanges, would not apply if there is no share issue at the launch as well as certain other conditions in section 10 of the document below.

https://content.next.westlaw.com/3-518-7086?__lrTS=20210611131323100&transitionType=Default&contextData=(sc.Default)&firstPage=true

https://www.forbes.com/sites/kenrapoza/2020/07/15/why-russian-companies-are-rediscovering-their-own-country/?sh=2981a51b4fa7

Opinion only

I suspect that may be the point that BKY's solicitors will make, though the CSN's unfavourable report for the grant of the Authorisation for Construction may be an issue.

I wish BKY every success.

The main clause as mentioned earlier may be "SGRF may terminate if there is a breach of a representation or warranty or a *material adverse change* occurs in respect of the Company.

https://polaris.brighterir.com/public/berkeley_energia/news/rns/story/xjvqlnx

If this claim by SGRF is upheld, it would leave little funds available to pursue any further legal challenges. The cash position was c $79m at YE 30.06.21. The SGRF are looking to reclaim $65m. I sincerely hope that BKY are successful, but they definitely need some leeway from SGRF to continue the fight.

Traders ahoy..

Just confirmed in RNS....

A trading suspension has been announced on ASX as below, pending an announcement to be made on Thursday. There is a *rumour* that the Omanis are asking for a return of their investment on HotCopper, but there is no verification of this.

https://hotcopper.com.au/threads/ann-trading-halt.6395738/

"SGRF may terminate if there is a breach of a representation or warranty or a material adverse change occurs in respect of the Company. "

https://polaris.brighterir.com/public/berkeley_energia/news/rns/story/xjvqlnx

I hope that the CSN/ Spanish government are well an truly held to account over this *if true*.

goodflyingduck

If you look at the EUA annual accounts for YE 31.12.20 (pp 54) you will see that ZAO Kosvinsky Kamen made a loss for the year of £1,754,307 on sales of £1,357,958 (assuming that all turnover in the EUA accounts was generated by ZAO KK) .

ZAO KK is actually technically insolvent as total assets are £4,231,046 compared with total liabilities of £6,580,420. More importantly, it would have been unable to meet its current liabilities of £442,379 at the year end as current assets stood at £380,566. This means it would rely on funding from EUA to continue as a going concern as at the date of the accounts.

I hope this helps.

This post from ARB is nothing more than an adaptation of an old spoof/ satirical article from 2000. It has been used on many other BBs as you'll see if you google "Confessions of a Paid Basher".

https://valuewiki.wordpress.com/2007/04/26/the-myth-of-the-paid-basher/

There are a coupe of points to note regarding the Convertible Loan Note.

From the half year report, given technical completion of the project will not occur by 30 November 2021, the Company has formed a view that the convertible note will convert at the floor price of £0.27 on 30 November 2021. This will have the effect of adding an extra 186,186,815 shares in issue, which is pretty significant dilution.

Further to this, according to the RNS, "the Company has no obligation to extinguish the convertible note using its cash reserves and it is only repayable in an event of breach of the terms of the investment agreement which includes....a breach of covenants, insolvency of the Company or the Company ceasing to conduct business or ceasing being listed on a recognised stock exchange." The company ceasing to conduct business or being listed on a recognised stock exchange would seem unlikely in the near future.

My own feeling is that the company will pursue the rare earths path, though the initial drill results were disappointing to me. It's also unlikely that BKY can appeal the CSN decision directly, but I wish them all the very best in pursuing recompense from the Spanish Government in any way they can. A classic example of bowing to pressure from the public to chase votes rather than trying to educate.

Tillywhiz

"Not sure the USA ii would sell at a loss , is it BR clients that’s opened shorts"

It's almost certain that BlackRock are lending stock to clients for short-selling. It's a highly profitable part of their business. The link to the pdf shows how this works - the diagram in the document explains the process clearly.

"We [BlackRock] firmly believe that short selling is a crucial contributor to efficient capital markets and that lending securities is not in conflict with effective engagement with companies."

https://www.blackrock.com/corporate/literature/publication/securities-lending-viewed-through-the-sustainability-lens.pdf

I think that this notice may be nothing more that a reminder to submit overdue accounts. It's stated that the notice was an event that occurred between 4th Feb and 6th May 2021. I can't see a specific date of issue for the notice,

Accounts were submitted, probably for two separate years, on 8th March and then 21st April 2021, so the notice still stands on the record but the it's likely the terms have been fulfilled.

It would be CERTAIN that EUA would have to issue an RNS immediately if UAP was indeed being wound up.

https://opencorporates.com/companies/cy/HE141187

*** = r e s e a r c h - t r e e . c o m

Website/ twitter links to Selection Mines & Kalahari Key here. Pastures new for CS....?

https://twitter.com/selectionmines?lang=en-gb

https://www.kalaharikey.co.uk/

https://*********************/media/selection-mines-creating-a-mining-house-as-a-global-vision-of-past-entities