Member Info for CF73

This was an earlier Bloomberg article:

https://www.bloomberg.com/news/articles/2018-08-23/eritrea-mulls-new-port-as-ethiopia-rapprochement-spurs-investors

This article from only yesterday (Sept 5th) discusses infrastructure for potash projects in Eritrea/ Ethiopia. Circum gets mention. Crucially, it shows that the authorities in the region are moving to make possible these projects. Remembering that Circum are working on funding/ financing arrangements at this moment (working on raising $500m debt: $300m equity etc.). Talk of potash plant being built by Norwegian chemical company, Yara International.

The more projects that can be guaranteed/brought on line, the better, as it makes infrastructure, from ports to plants, more viable.

Good stuff for CIRCUM and PREM :-))

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http://www.portstrategy.com/news101/world/middle-east/eritrea-considers-new-red-sea-port

Plans to construct a port on Eritrea’s Red Sea coastline indicate Eritrea’s re-emergence as a possible investor destination following the end of two decades of political tensions between the nation and Ethiopia.

Bloomberg reported that Eritrea is considering building the facility to export potash from deposits being developed in the country.

The business news provider said that the port adds to a series of port developments in the region by countries including Sudan, Djibouti and Somalia.

In an interview, Alem Kibreab, director-general of mines for Eritrea’s Ministry of Energy and Mines, said that the facility (which could be used by potash projects under development in Ethiopia as an export route, instead of Djibouti) would be located at Eritrea’s Bay of Anfile — 47 miles east of the 1.2bn-metric tonne Colluli potash deposit, also in Eritrea.

He added that a feasibility study is currently taking place to determine the specific site, with the beginning of construction envisaged around five years after a mine commences operations there.

Building of the $320m Colluli mine is anticipated to begin later in 2018. According to Bloomberg, bankers are being engaged to secure financing for its construction, with talks having accelerated after Eritrea and Ethiopia’s recent resumption of harmonious relations. The two nations last month agreed to implement a peace agreement ending conflict between the countries.

Output from the mine is initially set to be shipped from the existing Eritrean port of Massawa (which has enough capacity to handle the mine’s exports but is further away than Anfile).

Norwegian chemical company Yara International plans on establishing a $700m potash plant near the Eritrean border and British Virgin Islands-registered Circum Minerals Potash has a mining license there covering 141 square miles.

...is now a truer reflection of the actual SP. Think before it was putting folks off. Volume still not high but we are headed towards the weekend and next week brings us much closer to news on RHA ownership and operations and Zulu.

The rise to come off the back of all of this will be much more sustainable.

Guess it's a matter of take your positions :-))

As long as due diligence doesn't uncover issues, KDNC would be mad to turn this down.

Looking at the proposed deal, give or take, it actually really does benefit both parties. We get $5.1million to take us to DFS and an immediate valuation for the entire project of the order of $17million - equivalent to our market cap.

KDNC get the right to acquire up to 30% of a project that has been compared to Pilbara Minerals (which has a market cap of $1.4billion, and the mine's not yet completed!).

Post DFS, you get a sense of what the project might be worth, taking into account what are incredible project economics, including capital costs/CAPEX of only $64million and what must be amongst the very lowest extraction/production costs anywhere. This will all come out in the DFS, when the NPV will be calculated and much a truer value can be placed on ZULU and PREM.

KDNC has other projects they are supporting but really ZULU needs to be the priority for them. If they agree to the JV, then they in turn help unlock that value. In a sense, it is purely down to them whether or not they want to benefit out of ZULU.

Honestly, can't see them saying no to this.

RED, this is one thing that's for sure. Some very decent folks invested here and who've remained committed. About time GR helped them to feel like it was all worth it. And for what its worth, think we're on the verge of making the breakthrough.

- RHA 90% ownership due soon (should be a dead cert);
- RHA drilling and survey work on open pit encouraging;

KDNC due diligence on ZULU coming to a close;

CIRCUM looking closer on the horizon (talk of Circum minerals raising $500million in debt and $300million via equity, and have been in China, in particular).

And they all look like they could really happen.

Good luck all!

Even if news doesn't land tomorrow, we're only really days away and on a number of fronts.

Listed SP isn't the same as the actual buy/sell price, but still, we have a possible breakout on our hands...

'minermate' also said the same about KDNC/ Zulu

What I would say about KDNC in regards Zulu is that the proposed deal is that its set up in such away that it is to be the benefit of both parties. Would struggle to see KDNC turning down this opportunity. Zulu is potentially on a par with Pilbara

We have RHA returning to operation in the coming days/weeks and outcome of KDNC due diligence to be announced within a similar time frame (if due diligence successful, then we should be seeing a JV with KDNC and the funding we need to see Zulu to DFS or at least a good way through).

To big pieces of news in the near term.

I also think a Circum announcement could finally be around the corner.

Good luck all!

Wowsers - That's hefty! About tick up coming

My own personal interpretation being that once letter is in, they're effectively free to commenced with binding JDA. As a few of us have said already, JDA docs must be completed and only waiting for the signatures. They've had long enough on it and cannot see how what the awaited letter contains would have any bearing on the content, terms, details, numbers etc. set out in the expected JDA. With the change of CEO at EDM, can see why GE in particular wanted to wait for CEO to be in place. Issue of continuity. Really helpful that in the meantime we've heard about Mozambican El Presidente Nyusi visiting Beijing to sign number of MOUs with Chinese state (CMEC being Chinese state), taking with him his minerals (i.e. coal etc) minister. Not that often Mozambican El Presidente visits China, so can guess opportunity to sign as much as possible to the fanfare of a state to state official business visit. It puts into perspective EDMs actual role in this (relatively small in that big scheme of things) and what's actually driving these programmes of work and cooperation. I have my own views about what's been signed out there. I'll let folks come to their own conclusions ;-))

He said once letter from new CEO in, they have an agreed JDA time table in place, and then 'it's off to the races' -- paraphrased but I'm confident I've conveyed that portion of the podcast reasonably accurately

TTP, if Aeasty me ol mucker don't mind, I can answer that question about Hanno saying about being 'off to the races' --- yes, he did. Believe this is in the bag but that there are one or two loose ends. In the last podcast, Hanno was trying communicate this as best he could, without contravening any understandings between parties as to could or could not be said.

This is just the start. Not long now for the final re-rate out of these levels and much deserved relief for those who been in too long :-))

Seems that efforts around RHA and ZULU are coming to key milestones along a similar time line. The recent drilling and survey update on RHA Open Pit, was really encouraging. Believe it signals the way for a positive, productive restart at RHA. ZULU is closing in. While there's been the delay, the delay is well understood and accepted as unavoidable, outside of company control. From an informal chat with the company, seemed that from whatever DD work had taken place previously, things had progressed well enough. The deal would certainly serve both companies well. In a sense, it's on a plate for both to make happen. Good luck to all the genuine muckers here!

Looking good all round here. Commercial oil, Majors with NDAs in place and price oil looking strong

Lol Calling in the loan in 2020 is JohnnyB's argument when right now we're in the middle of arranging a JV or farm out that will mean we're likely to net a significant amount of cashmoolons... You got to love some deramps

With the announcement of the Majors taking a deep interest, I think the debt issue is something felt to be in hand. I'm certainly very comfortable with it.

From the RNS:

https://investegate.co.uk/frontera-resources--frr-/rns/operations-update/201809030700084937Z/

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“We are very pleased to see that successfully completed recent drilling campaign and initial flow rates from all currently drilled three wells have demonstrated commercial oil deliverability from Zones 14 and 15 of the Eldari A and Zone 19 of the Eldari B formations.

“Due to the current technical and commercial discussions with industry majors, which may lead to a farmout or joint operating arrangement in specific areas within Block 12 with respect to both oil and natural gas, the Company has changed the initial well testing program such that the current production test from Zones 14, 15 and 19 will continue for a longer period of time than what was anticipated before and additional tests could potentially be performed. We look forward to updating the market as we progress with our work.”

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It's there, in print, not having to be over-extrapolated, imagined or invented.

The important bits again:

a) '...demonstrated commercial oil deliverability from Zones 14 and 15 of the Eldari A and Zone 19'

b) '...that it has entered into Non-Disclosure and Data Exchange Agreements with two industry majors.'

c) that b), entering 'into Non-Disclosure and Data Exchange Agreements with two industry majors.' confirms that the testing at Block 12 must be successful so far and expected to be further confirmed

And d) that by coming out about it, at this stage, is very strong indication that they will be going ahead with some form of collaboration.

We've had consolidation today. In light of the news and future prospects here, current levels are an utter gift. This has become a rare opportunity. I'll be piling in some more tomorrow.

Good luck all!

Thanks Applegarth, that's massive