Member Info for JAllis

Here comes the seller again

For the regulars - any thoughts on who it may be? Amati, Perry, a Director? If Perry then one would assume not much further to go, either of the other two then may be a while yet...

I don't think any junior miner on AIM is being valued at 'true value' ATM on AIM. There are many that are undervalued according to metrics of the recent past. At a fully diluted 9m at current price EST is already 'q bit rich'/commanding a premium when compared to peers

They wont be triggered at this price but a level or two up at least which when taking spreads etc into account would mean selling would be at these levels/a level up meaning that anyone buying now or above would have to content with a fair bit of selling at their spread loss/be level before they would see profit. Take into account the risk of a deal not concluding/being delayed to announced timelines (which is common in AIM) which would cause SP drift makes it a highly questionable endeavour to buy in now.

How much of a delay will this now add to the already long awaited and delayed FS?

65M in warrants and options just waiting to be exercised of which 50M are warrants with 36.4M of them at 3p. That is a heck of a lot of dilution and a massive headwind on the shareprice. Will take a tonne of liquidity to get through it all, far more than is currently traded on average per day

Bolivia step closer to full lithium potential as $1bn Chinese deal closes

Bolivia finalised a major deal this week with China’s largest battery producer CATL and largest cobalt miner CMOC in a move that could finally see the South American country untap the full potential of its huge lithium resources.

State-owned producer Yacimientos de Litio Bolivianos (YLB) said the group would invest around $1bn (919.97bn pesos) to build production plants that would use direct lithium extraction (DLE) in the Salar De Uyuni and Salar de Coipasa salt flats.

The consortium, which also includes CATL’s recycling subsidiary, Brunp, will produce 25,000 tonnes (t) of battery-grade lithium carbonate by 2024 and 100,000t by 2028, using DLE rather than large evaporation ponds.

https://www.mining-technology.com/extractive-industries/bolivia-step-closer-to-full-lithium-potential-as-1bn-chinese-deal-closes/?cf-view

Buzios - its not about the EU engaging with them but who ultimately the Bolivians want to go with - the Europeans, the Russians or the Chinese. Bolivia has long standing good relations with both the Chinese and the Russians. Bolivia-EU relations on the other hand are "not formalised"

https://international-partnerships.ec.europa.eu/countries/bolivia_en#:~:text=EU%20relations%20with%20Bolivia%20are,development%20aligned%20with%20EU%20values.

Rebel - They've not used it previously its part of the bid round for these new licenses I believe. Following is extract from YLB:

"UCOM-YLB-01-21-2024.- La Paz, January 21, 2024 (UC – YLB) .- The president of Yacimientos de Lithio Bolivianos (YLB), Karla Calderón, reported today that the state will test the Lithium Direct Extraction (EDL) technology offered by companies from China and Russia in order to guarantee positive results and available resources to install industrial lithium carbonate complexes."

Appears that Russian and Chinese companies involved in the bidding also have DLE tech according to the YLB

The 52 days is the time given to the bidders to compile and submit their datasets, after that the gov reviews, shortlists and then moves to phase 3 the submissions and reviews of which likely take us to the Aug 6th date

Question - there appears to be a view that news on the licenses is expected over the next few weeks, could someone clarify what the source of this is? Based on the interview DH did with StockBox in March he mentioned contract signing would be by August 6th - this would also align with the following:

"“Let it be clear that we’re working with the most legally serious companies. Twenty-five companies moved on to the second phase and in the coming days the information exchange agreements will be signed, which will be mainly technical,” YLB’s president Karla Calderón said in a television interview.

Calderón added that the companies were authorized after verifying compliance with administrative and legal requirements established in the call.

In the second stage, qualified companies must present their proposals and prove their technical and financial capacity to carry out the proposed pilot projects.

In the third phase, the YLB evaluation commission will analyze the proposals and issue reports on the companies’ suitability to sign agreements with the state firm. YLB plans to sign the agreements on August 6."

https://www.bnamericas.com/en/news/bolivia-qualifies-25-firms-for-lithium-pilot-plants

https://www.youtube.com/watch?v=wNM5gTjAsuw

Appreciate the last RNS mentioned negotiation on contract terms during April but that doesnt equate to contract signing.

When I was doing some further digging into Bennelong/Richard Shemesian over the weekend I came across the following articles relating to his brother Mick Shemesian. Some extremely dodgy activity occuring with links to criminals.

Interesting to note Rod Mcilree gets a mention as does Artemis where Richard Shemesian's brother was a major shareholder and Elizabeth Henson - one of the recent appointees to the UFO BOD was a director. Atleast one other company that was Shemesian's brother's deal and went bust in the past is mentioned - Range Resources.

Another interesting point to note is that Shemesian's brother operates out of the UAE. The Sydney Morning Herald article mentions Shemesians brother controls a vehicle called GCM Nominees. Gilmore Capital Management - one of the major shareholders of UFO is based in the UAE - is this the same company?

Does anybody know who is actually behind Windfield? And if there are any links there to Richard Shemesian?

https://www.smh.com.au/business/at-last-a-face-to-the-many-names-and-deals-20090923-g2qw.html

https://www.perthnow.com.au/business/gold/meet-mick-shemesian-the-mystery-man-behind-the-pilbara-gold-scramble-ng-b88662343z

Tango - If there is any difference of opinion between Bennelong and the BoD on how that is interpreted it goes t the courts. Where does cash for legal action come from? No cash, Bennelong, Shemasian call's in his loan and pockets the company.

Tango - The next step would be a FID/decision to mine, that is what a JV would be. Any such decision would active the performance payment.

The money they would stand to make would surely be worth it - 100% of the sale value of a JORC 8.4mt of DSO with all necessary permits. Truly shovel ready.

Tango - so UFO do nothing for 5 years, where dos working capital come from in the interim? A capital raise would require approval from Bennelong/Richard Shemasian which is not in their interests as it will dilute them and why would they want that when they can let it go bust and take 100% - therefore most likely a veto.

AnnoyingDevil - Same post above applies to the IOCA IPO - it would require approval from Bennelong and why would they want to give approval to further dilute their share when they can potentially get the lot for pennies?

refer to the rns of 24/8/22 wherein it states under section titled 'key terms of the option agreement':

4. if, within 60 months of executing the option agreement, alien disposes of its interest in the projects, the company will pay windfield a performance payment in addition to the upfront consideration (performance payment).

5. the performance payment is calculated by:

a. in the event of a tenement sale: 50% of the value uplift attributable to the projects;

b. in the event of an ipo/spin-out event on a recognised stock exchange: 50% of the value uplift attributable to the projects; or

c. in the event a decision to mine is made: 50% of the project valuation uplift attributable to the projects.

in each case, the uplift payments are reduced by 50% of the incurred project expenditure."

this 'performance payment' is a huge problem. lets say ufo jv for 50% of han**** (which is worth $146audm / £75m according to the 8/2/24 development study) they must pay half of that i.e. £37.5m to windfield - where is ufo going to get that cash from? ufo currently has a convertible loan note aka death spiral finance facility (which has a charge over ufo assets) to keep the lights on - they cannot raise that amount due to the low sp. the only option would be to sell but what price would a c£75m worth project sell for? £10m/£20m? half of this would go to windfield. now consider the convertible loan note facility provider - refer to rns 15/3/24 where it states 'in particular, key decisions will require the approval of the lender.' why would the lender want to give approval for such a sale or jv scenario when the can simply veto it (and any other funding/offtake etc) knowing the company will collapse in months without cash at which point the lender, bennelong, richard shemasian, c7% holder of shares in the company can take the whole company for pennies in the £. a proposition that is now extremely valuable given knac approvals, jorc and aussie mining licence and sell it on for full value keeping 100% of the returns?

Company had $1.77M as at 30th Nov and $1.72M/£1.36M as at 26th Jan, that's c$25K /£20K cash burn per month - ref RNS'

Add the £500K (before expenses) gives a total of £1.86M as at 26th Jan. £60K expenses upto end April leaves them c.£1.8M in cash today.

Based on burn rate thats plenty to cover corporate overheads and the shallow drilling. I expect any raises will now be after deal signing and a few holes in the ground at which point the SP will be considerably higher. Based on these figures placing is not a concern in the short to medium term.

In light of potential financing concerns, here's a recap of the previously secured financing terms by Tower Resources, which unfortunately did not materialize due to various issues such as rig availability and the COVID-19 pandemic:

In March 2020 when the oil price was c$49 per barrel, the financing secured for a portion of the overall cost was;

"The farm-out covers US$7.5 million towards the cost of the NJOM-3 well that Tower is planning to drill on the Thali block. OilLR will receive a 24.5% working interest in the PSC, subject to an overriding royalty of 10% for Tower on the contractor share of production under the PSC. The well cost is currently expected to be approximately US$15-16 million, of which approximately US$3 million has already been spent. Each party will recover back costs actually funded and recoverable under the PSC, pari passu. Tower will effectively contribute its non-recoverable costs in consideration of the 10% overriding royalty on the contractor share of production referred to above. Costs in excess of $15 million, and future costs, will be funded pro-rata with respect to working interests."

In Aug 2021 when the oil price was c$73 per barrel Tower reported;

"Tower Resources is pleased to announce that it has executed a binding Heads of Agreement in respect of a farm-out to Beluga Energy Limited ("Beluga") of a 49% non-operating working interest in its Thali Production Sharing Contract ("PSC") in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon S.A ("TRCSA"). The key economic elements of the transaction set out in the HoA are: The farm-out covers US$15 million towards the cost of the NJOM-3 well that Tower is planning to drill on the Thali block; Beluga will receive a 49% working interest in the PSC, subject to an overriding royalty of 10% for Tower's subsidiary TRCSA on the contractor share of production accruing to Beluga under the PSC. The well cost is currently expected to be approximately US$16.8 million, of which approximately US$3 million has already been spent;"

Both were great deals that would have pro rata covered the entire cost of the well at times when the oil price was far lower than today. Today a barrel of oil stands at $85. If Tower could get $15M for 49% of Thali when the oil price was $73, can they get those terms or better when the oil price is $85 - I think so!