Member Info for Ella10

I was going through the placing RNS in detail and an trying to understand the following statement
'A small proportion of the funds will also be used to complete the exploration and development phase of the copper and gold mining projects in Zambia and Mozambique, and the balance to provide additional working capital.'
Exploration costs I can understand but I'm missing where we have to pay for any development costs.
As far as I understand Manica development should not be costing the company anything as the development is being completed in return for a percentage. What am I missing in terms of development in Zambia or Mozambique that the company needs to fund?

Spectral Geophysics did the AEM for GLR

https://www.londonstockexchange.com/news-article/KAV/strategic-partnership-with-spectral-geophysics/14943806

XRF results and/or assay results known by directors would be material information that should be in the public domain before any director dealings take place. However, I don't believe the placees spent £5.5m on blind faith!

When XTR started drilling Bushranger I would have expected them to be fully funded to complete the activities as per the investor presentation in April last year.
We have drilled more than the original planned 4000m but haven't done the IP survey, drilling to test the other IP targets, regional exploration of the adjoining ELs or re-estimated the Racecourse mineral resource. Therefore we should not have spent the budgeted $2m.
We had a £5m (minus expenses) raise in Jan and a £5.5m raise today and 'we' expect Manica income later in the year. The implication I took (possibly incorrectly) is that the £5m from Jan is 'well shook'. I think some clarity on how this money has been/will be spent is required. These are substantial raises but seem reasonable given the size of the resource that we have but I don't get the impression there is a managed budget to get us to 2m tonnes of copper.

What ever happened with 3 way presentation with Doug Menzies?

Having listened to part of both interviews again there may have been 2 interviews put together for the 19th march release of hole 1 assays. The latest interview isn't the one released for hole 1 assays but have been a variant that has got accidently released today for the first time.

This is the interview for hole 1 assay
https://www.share-talk.com/colin-bird-executive-chairman-xtract-resources-plc-xtr-l-exclusive-interview/

To me the latest interview sounds like someone has been playing with an audio editor.

That was it - just VERY well disguised.....

It is interesting that the warrants haven't been approved yet. Does this mean that the new shareholders will be able to vote on whether they are assigned warrants - The GM might be interesting.

In conjunction with the Placing, the Company proposes to issue the placees a total of 49,107,142 warrants, being half a warrant for every share. The warrants will be exercisable in whole or in part at 8.5p per new Ordinary Share to be exercised within 2 years of being issued. The issue of warrants is conditional on shareholder approval of the necessary increase in authority to issue the warrants. A General Meeting will be convened as soon as practicable and a further announcement will be made in due course as and when the notice convening the meeting is published.

 

 

Steve totally agree on your comments about knowledge of the assays - only for the priviledged few at the moment.

So including warrants looks like greater than 20% of current shares. John Cornfords 40p per share needs adjusting to take this and any future dilution into account.

Hi Fulmar,
I wouldn't class them as all in the same area but they could VERY broadly all be classed as NW Zambia.
Cattleman,
There are a few applications (no obvious link to AA or ARCM) in progess in the vicinty of ARCMs licences and I do wonder if they are related although it wouldn't surprise me if there are some private ventures happening concurrently.

I was looking in the Zambian mining cadastre earlier today to see if I could come to any conclusions about Anglo's presence. From July last year it looks like they have 6 new LEL applications.

I assume the EA will have been beneficial to ARCM even if AA walk away. It is unlikely a company such as AA entered an EA lightly and therefore I believe it unlikely to amount to nothing. It is however a possibility that there will not be a deal and if this does happen it will unfortunately likely cause at least a temporary drop in SP together with leaving us with some bills. Even if a deal does not happen I suspect ARCM will have got significant benefit from the EA via access to their expert geologists and presumably also access to historical info which may not be available or obvious from inherited data.

Apologies should also have said 4th March RNS included detail of a payment as well
'Galileo Resources plc ("Galileo" or the "Company") announces that on 3 March 2021 it entered into a conditional agreement with Siege Mining Limited ("Siege") in relation to the ceding of ownership and operation of the Star Zinc Project (the "Star Zinc Project") for US$750,000 (being US$200,000 in relation to the large-scale exploration licence 19653-HQ-LEL (the "Star Zinc Project Licence") (the "Licence Consideration") and US$550,000 for Galileo ceding its participation in the Star Zinc Project and all exploration information which it has in relation to the Star Zinc Project (the "Project Assets") (the "Project Consideration"). Galileo will also be paid a royalty (proportion share) based on future sales of zinc from the Star Zinc Project for Galileo allowing Siege to use Galileo's information, know-how and commercial experience in relation to the Star Zinc Project (the "Agreement") .'

Relevant to this discussion is GLRs dealings around Star Zinc. This asset owned by GLR was expected to be mined for the benefit of shareholders. It came light (in Nov/Dec) that another party had applied for a licence to mine it - applied for on the 26th Sept 2020 according to the mining cadastre. The trading update issued on the 30th Sept 2020 stated
'Further to the announcement of 3 October 2019, drill core material from the Star Zinc project was made available to Jubilee Metals Group to facilitate bulk sample testing. The potential contribution of silver and germanium from Star Zinc ore will also be further assessed. It is planned to prepare an application for a small-scale mining permit, including an environmental permit, with mining to commence as soon as this process is finalised - targeted for 2021. Star Zinc mining plans and permissions are progressing favourably and the Company will make an announcement in due course.' This does not appear to reflect reality at the time.
From the results published 24th Dec
'Our Star Zinc Project in Zambia has been fully evaluated and is now ready to commence production as a small mining operation. Whilst small, the zinc, silver and germanium metal content make the project a very valuable, potentially 5-year duration, cash flow supplier. The willemite ore occurs from surface to just 60m depth, making open pit mining a relatively simple operation. We are currently finalising our plans to bring this project into production during the first quarter of 2021.'
Several investors tried to contact the company from mid Jan on to get clarification, as the mining cadastre was clearly showing someone else was applying for a licence to mine it, but could not get a response via email or phone.
29th Jan RNS glossed over Star Zinc which raised concern with several shareholders
'Galileo has decided to cease seeking Ministry approval and therefore will no longer be assuming the rights from BMR.'
Eventually on the 4th March after several investors contacted the NOMAD an RNS was issued that effectively states that GLR will get a 3-4% NSR rather than the 100% revenue expected from Star Zinc.
As always up to individual investors to do their research and make their own decisions. The above is an interesting story of how info can get released to market on aim.

Hi HD,
Yep, i'm invested here. Hopefully we all get some good returns.

Hi Fulmar,
Interesting. Do you know anything about Sustineri Group formed in Jan by Remy and Nick involved in '07290 - Mining of other non-ferrous metal ores'

Hi Funkysausage,
I'm not convinced that is the case but if it is we could be be waiting quite a while. The Siege licence is still awaiting a decision.
From the RNS
'Completion will occur once the Star Zinc Project Licence has been assigned to Siege.'

 

Two extracts from the placing RNS
'Following a detailed work programme over the past few months we now believe a number of targets within our tenements are host to a series of deeper mineralised systems. This will require more significant, deeper drilling as well as an airborne geophysical survey'
'This high quality survey will provide a detailed subsurface picture over the areas in question that will enable targeted follow-up deeper drilling to confirm the interpreted basin architecture and target potential mineralising traps and structures at depth.'

Having read some if the other statements on their exploration I wonder if the above means that they think they have a substantially larger system than previously thought.