Member Info for Dcat80

AA used to hold the Arcm licences as well and know them better than anyone, albeit your looking back to the 90s there and obviously exploration methods have improved since.

As I commented before it would be nice to know if we’re sharing current drill data with AA to help expedite any further dd they’ll need to do before making decision. However I really don’t see that taking anywhere near as long as the 6momth technical study carried out at Arcm. Plus the deal here at XTR is much simpler- they have the right to 80% on terms deemed fair by independent valuation.

It’ll be much much quicker process than at Arcm, however it won’t be agreed overnight.

There is also the possibility iceberg previously made that a deal would be offered altering current arrangement early.

Luderitz - of course we will be of interest to Largo. Just listen to their CEOs excitement when he discusses the effect monetizing their tailings with 13% Tio2 content will have on their finances - equally as important (listen last 2 minutes of video below)

https://www.youtube.com/watch?v=48FqpJF5tlY

Jangada have 33.75% Tio2 content in tailings. The non magnetic ore will actually be our main revenue/profit driver.

Long term potential here is considerably more than the circa £150m MC a 70p SP would command and as posted earlier our share structure is such that we won’t be taken over on the cheap.

Largo as a project partner is more likely. They’ve the means to expedite phase 2 construction of a chemical plant and have the appetite for Tio2 product and sales team I.e. could also become offtaker at discounted rates, similar how glencore was originally offtake producer for them when they got started.

Tom- over 70% of the shares are owned by BOD/insiders, plus large portion of free float is held by sticky hands. No ones getting hold of our project unless BOD want to sell and vote to do so.

Value of today’s Valore sales and the earlier 2m = $1762500. More than the august transaction which was to fund current drilling and pea work/consultants fee.

We’ve also the £1.25m placing here at 9p.

Only additional expense since is the 2 new guys. Heavily experienced, but salaries in Brazil aren’t expensive.

So we’ve substantially more cash than we needed for recent activities.

Obviously something more is going on, just matter of what and when were told (what needs to be completed before we’re told). Project development is quite vague and could encompass many possibilities!

Another good question, don’t think bern volume at Valore for open market sales of those shares.

DS-

drill results continue to be good and pace of drill picked up considerably both of which wanted to see. Resource obviously being expanded.

Valore shares, don’t like seeing our exposure reduced. Question is why do we need such a cash pile and sooner rather than later? We’ve much more cash now than anything I’d expect us to need, ergo we’ve budgeted for more work or investments in fodere group. It’s got to be worth more than the upside we’re losing on the Valore shares which I’d expect to be considerable, but what is it?

BF - yep appointing such a strong financial advisor there good sign we need someone to help formulate commercial transactions. Full takeover and it’s not even decision on when to slice, JV should be 10p minimum where I suspect some will slice, JV followed by successful drilling turning tier 1 targets into tier 1 discoveries and can start looking at charts like GGPs with further slicing on the way up. As you know that’s where most my networking connections comes from and they’ll be good stocky holders to add to our register for the re-rate to triple figures :)

Glad to hear, did say I’d leave you guys to pick up the slack ;)

Signed the papers from a company pension provider to move funds into my SIPP yesterday, hopefully not too long now until I have funds to add again!

ARS placing of £10m needs settling soon, money has to come from somewhere and no doubt with it also being copper it affects other copper plays. Arcm was also sold heavily earlier down 6% within 10minutes. It’s the market, placees need cash from somewhere...

When we saw Largo looking at USA markets before I don’t think it was nasdaq. Looks like they’ve upped their plans and wish to tap the USA markets for more capital

https://www.largoresources.com/investors/news/press-release-details/2021/Largo-Resources-Announces-Share-Consolidation-and-Application-to-List-on-the-Nasdaq/default.aspx

It’s same transaction no doubt. 2 minutes apart whereas bed and isa transfers usually seconds. So either between 2 parties I.e. pre agreed sale going through or one individual moving between broker accounts, possibly physical shares to a spreadbet provider where they would still have to pay 100% (don’t get leverage on that size, but as a spreadbet is not taxable.

Either is good sign. Big money either sees this as just start of re-rate and is looking for tax savings or we have a large stake builder with minimum requirement and someone is selling some of their stock to facilitate them getting a meaningful size.

There does seem to be more going on than meets the eye and with the quality of just initial PEA and expected free cash flow I can’t see whatever is happening being bad!

2 x x 4.25m trades just 2 minutes apart. Either someone moving between own accounts or it’s an agreed buy and sell between 2 parties. Well over the size bed and isa would allow do can discount that.

Add in the other transactions at both Valore and Jangada and it looks like new stake builder involved. With the financials from our initial PEA anyone thinking that’s a bad sign is mad.

Look forward to seeing just what is happening when all complete

Unlikely. The two times we’ve sold have had buyers lined up and not onto open market. It’s even in the sale agreement of PB that we advise Valore before and let them find buyers.. They just place at 30c with warrants at 45c, no doubt some flipping being done

Andrew- have a think what are remaining 20% would be worth if AA exercise their right to 80%. As commented Sunday it won’t be as 3% of the in ground value of that 20%. AA won’t spend the money on 80% unless very serious on mine build and with their pockets financing won’t be an issue..

Would have to be on a % of estimated project NPV x our 20% remainder. I’d expect more valuable than what we get for 80%. Plus that would include any added resource from drilling once AA are in control

ASX listed neometals today released more news on their VTM deposit which they also refer to as hard rock Tio2 project...

One I keep my eyes on as it’s probs my the commodity split most in line with pitombieras

https://twitter.com/neometalsltd/status/1366577096517054467?s=21

BF - did have that thought myself, or at least some other recent buying. We know people talk so of not then at least more mouths to share the story

O&W- 14/2/20 RNS - trial mining application typical takes 3-6months. Since then Luis has been involved in regulatory changes and this if anything would have streamlined

Shows intent, never employed anyone with mine build experience when Pedra Branca was project of focus. Both highly experienced with history at Vale obviously being largest mining company in Brazil.

Another side affect would be highlighting the project, these guys will have contacts which could lead to further interest in Jangada share ownership..

Andrew- just one more consideration as well for longer term. If AA do act and buy 80% and we option to retain and fund our 20% then the valuation methodology for that 20% changes. The money AA would pay for acquiring the 80% wouldn’t be paid unless clear intention to develop into a mine. Look at GGP, their share of the asset and value to inground gold. Becomes much more about likely npv and a discount from that rather than the usual 1%-5% range of inground value. Focus today has just been on acquisition, at what contained copper amount etc

Andrew - yep spot on what I’m getting at. All about possibilities of maximizing our upside from the licence that Bushranger and footrot sit within. It’s more academic at this time (just as frog says) hopefully though future news and comments from CB might give clues though.

It’s certainly not a criticism either of what just 2mt then being cut to 20% or 0.75% NSR would mean to Xtract, that alone would obviously be truly transformational for Xtract, especially if you consider where we were just a few months back. Nice to be so confident already looking at possibilities beyond!