RE: RE: Migori licences23 Aug 2020 12:32
Yes you sold too early and too low. You now have seller's remorse.
1. The licenses were always going to be exploration licenses: that is what RRR had before and it was merely renewing them.
2. RRR had submitted a mining license application in respect of the tailings and was in the process of submitting one for Nyanza when the legals hit.
3. The costs and revenues for the above were disclosed in the RNSs.
4. The conversion to mining licenses is covered by the Mining Act 2016 section 101 onwards.
5. AB/RRR has said several times that it has a JV for Migori lined up. JVs for gold and silver at the current prices is no big deal.
6. The interest on the CLNs is rolled up not paid. On conversion it is the capital and interest that is converted. It is likely that all the CLNs will converted and mostly held for the medium term. No point in converting now, it just reduces the ultimate value of the holdings.
7. RRR has holdings in JMS, POW, CRCL and SOMA: the holding in POW is north of £400k and likely heading north.
8. If RRR needs cash to progress the Migori tailings, it will only hit after it has received a mining license for them. The same applies to Nyanza. IE., the capex to set up operations is not needed anytime soon.
9. Both the Tailings and Nyanza can be funded with project level finance. RRR was completing banking feasibility studies on Nyanzza when the legals hit: NOTE Banking Feasibility Studies when the gold price was around $1,200. Getting project finance is not an issue.
10. Look up gold streaming. This is a form of forward funding for gold projects.
11. You sold out too early and too low: get over it.
DYOR
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