@cmsammy, there were sell signals on the majority of timeframes at yesterday's close. 'Traders trade'... and nothing goes up in a straight line. I'm seeing a normal retracement pattern. Once the technicals catch up with price I'd expect a continuation upwards.
It's a tough one...There is no agreement / obligation to mine the JV lands together. Just exploration.
KM, at every opportunity tries to distance himself from how the current exploration JV is structured. But has been trying for years (thought it would take 6 months) to get an operational JV agreement with BCN to no avail. Will Ganfeng oblige or continue with their 70% if we don't accept a low ball offer?
https://drive.google.com/file/d/168VWfmvCxJ6n8eRZyGFsxe_VmqdoB9Qn/view?usp=sharing
@EV, the 3% royalty BCN are challenging in court are from the MSB concessions purchased in 2010 and are made up of the following....(to get your 4,550 hectares).
"Company acquired four lithium exploration concessions in the Sonora State of Mexico,
covering approximately 4,050 hectares (La Ventana, San Gabriel, El Sauz and Buenavista)
and a pending application (Penasco claim) in respect of a further 500 hectares.
All other royalty claims are valid (for the forseeable) ;-)
@EV, I recall BCN only chose to argue the case for the 5 concessions through the courts as these areas are to be mined first. The 3% royalty is across all concessions. Obviously if the court case rules in BCN's favour then the other concessions should be a formality when challenged.
I'd say COE's royalty is still applicable to the JV's, I certainly haven't seen or heard anything to suggest it doesn't.
From the AIM Admission Document....
1.4 Sonora Lithium Project
The Sonora Lithium Project consists of ten contiguous mineral concessions. Bacanora
through its wholly-owned Mexican subsidiary, MSB, has a 100% interest in two of these
concessions: La Ventana and La Ventana 1, covering 1,820 hectares. Of the remaining
concessions, five will be owned 100% by Mexilit S.A. de C.V. (“Mexilit”). The Mexilit
concessions consist of: El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 and cover, in total
6,333 hectares. Mexilit is owned, on a 70:30 basis, by Bacanora and Rare Earth Minerals PLC (“REM”) respectively under the terms of REM Agreement 1. The remaining three concessions: Buenavista, Megalit and San Gabriel cover 89,235 hectares and will be owned 100% by Minera Megalit S.A. de C.V. (“Megalit”). Under the terms of REM Agreement 2 between Bacanora, MSB and REM, REM has earned a 10% interest in Megalit and will earn a further 20% in Megalit by providing funding of $US1 million on or before November 23, 2014. Under the terms of REM Agreement 1 and REM Agreement 2, REM has the conditional right to negotiate to acquire up to 49.9% of Mexilit and Megalit. There is a 3% royalty in favor of Colin Orr-Ewing on all of the concessions.
FWIW IMO, it's to do with the JRP expiring (it's valid for a maximum of 2 years), it was granted in August 2019. From what I can tell the judge now has to comply with and rule on the following (amongst others)....
Art. 61. The decision provided for in art. 58 of this Law, the judge may determine the maintenance of the debtor in judicial reorganization until all obligations provided for in the plan that expire within a maximum of 2 (two) years after the granting of judicial reorganization are fulfilled, regardless of any grace period . (Wording given by Law No. 14,112 of 2020) (Term)
1. During the period established in the caput of this article, the non-compliance with any obligation provided for in the plan will result in the conversion of the recovery into bankruptcy, pursuant to art. 73 of this Law.
2. Once bankruptcy has been declared, the creditors will have their rights and guarantees restored under the conditions originally contracted, deducting any amounts paid and except for the acts validly practiced within the scope of the judicial reorganization.
Art. 63. Once the obligations expired within the period foreseen in the caput of art. 61 of this Law, the judge will decree by sentence the termination of the judicial reorganization and will determine:
I - the payment of the balance of fees to the trustee, who may only settle these obligations upon rendering of accounts, within 30 (thirty) days, and approval of the report provided for in item III of the caput of this article;
II - the calculation of the balance of court costs to be collected;
III - the presentation of a detailed report by the trustee, within a maximum period of 15 (fifteen) days, dealing with the execution of the recovery plan by the debtor;
IV - the dissolution of the Creditors Committee and the dismissal of the trustee;
V - communication to the Public Registry of Companies and the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Economy for the appropriate measures. (Wording given by Law 14,112 of 2020) (Term)
Single paragraph. The closing of the judicial reorganization will not depend on the consolidation of the general list of creditors. (Included by Law 14,112 of 2020)
C'mon @Obs, I know....you know, the importance of a mining JV agreement to enable the sale to a third party for $$$. And we don't have one ;-( BCN / Ganfeng have made it so we don't have an 'OUT', unless it's on their terms IMO.