Member Info for KlueLoss

JLP are taking over the full costs of the project. I think the original £300k +£1m+£1m was all going on the plant build anyway which the 'contractors' JLP would look after.

Shilling for Borrelli.

Opportunistic from them as they remained silent over the last 6 months with no real interest whatsoever. An opportunity to try and get a few new customers whilst trying the now redundant line of 'Alex isn't that bad of a guy, it could be worse....'

Let us know how you get on with speaking to someone from AIM please.

I believe we are going to stop counting and now move to verifying individuals shareholdings.

Accordingly, Enviro Mining Ltd and its two Zambian‐registered subsidiaries, Enviro Processing Ltd and Enviro Props Ltd, become wholly‐owned subsidiaries of BMR. These companies own the leasehold rights and title to Stand 5187 containing the stockpiles at Kabwe until 30 June 2075; the contents of all the tailings dumps included in Stand 5187 and Dump 57; the Small-Scale Mining Licence relating to lead, zinc, copper and cobalt minerals for a period of 10 years from 20 October 2010, renewable thereafter; and Access Rights to enable BMR to develop Dump 57.

BMR is paying US$2.5 million in cash on completion. In addition, the vendor has the right to receive further consideration of either £4.8 million in cash or 80 million new shares in BMR or a combination of both. BMR has agreed that the vendor must make its election regarding the nature of the consideration within the next 14 days.

You’re correct mcmac, I’ve always treated the 3 subs in Zambia separately for some reason. JLP to get the lot for not a jot. So in theory JLP could prove up the method and sell the business and BMR would never see a penny. Thanks Alex.

From accounts

Incorporated in the development assets is a fair value adjustment of £6,885,175 as a result of the acquisition of Enviro Mining Limited on 20 June 2011 and its two subsidiary companies, Enviro Processing Limited and Enviro Props Limited (together “Enviro Group”). The Enviro Group owns the leasehold rights and title to Stand 5187 containing the stockpiles at Kabwe and the contents of the washplant and leachplant tailings. No impairment has been made on the fair value this year on the basis that third party reports and internal evaluation of future income streams allied with the associated production costs generate net present values, using conservative discount rates, which are well in excess of the costs capitalised as development assets in the balance sheet.

As per JLP RNS “In terms of the Updated Agreements Jubilee is further granted, for a period of 24 months from the effective date of the Updated Agreements, an irrevocable free option to acquire 100% of the issued Shares in EML (the "Acquisition"). Following the Acquisition Jubilee's equity interest in Kabwe Operations and EML will increase to 100%.”

EML = All stockpiles of tailings.
EPL = Licenses

So are we retaining the licences and therefore all the liability and responsibility through EPL.

By exercising their option to acquire EML will BMR be given anything in exchange or has given them all of the tailings for a future royalty?

From www.bmrplc.com
BMR has acquired all the stockpiles of tailings at the Kabwe mine complex. These assets are held by Enviro Mining Ltd, which is a wholly-owned subsidiary of BMR, and its two Zambian-registered subsidiaries, Enviro Processing Ltd and Enviro Props Ltd.

Enviro Processing Ltd holds the Small Scale Licence 7081-HQ-SML (edged in blue on the plan below) in respect of the tailings on Stand 5187 (edged in black on the Plan) and the Large Scale Licence 6990-HQ-LML (formerly known as ML1) applying to the whole 703 hectares of the BMR site.

http://bmrplc.com/tailings_stockpiles.php

Another $300,000 still needs to make it into the pockets of Blue Square Minerals unless JLP are picking up this bill? Money well spent by the looks of it as they’ve really earnt it.

Dire situation. Then only time Borrelli has treated anything with any urgency is when it’s detrimental to shareholders. If we ever relist the SP is going to be bombed out and I would imagine there will be yet another placing.

I’m sure many agree. It’s just the how that needs working on.

Yeah there I that, Borrelli will probably be contemplating rewarding himself for a job very well done. It’s been a tough 3-4 years but he finally out Alikhanied Alikhani.

My comments were somewhat tongue in cheek. We’ve been royally shafted and there is no doubt that AB and CB have been concocting this for quite a while. Borrelli obviously has had enough and has failed shareholders, this deal is the result of his efforts over the last 3-4 years.

“Such Royalty payments will only be due and payable by the Project once Jubilee has secured a minimum of a 20% return on the investment made into the Project and only once EPL or Kabwe Operations have received all generated earnings in cash.”

“In the event that the Acquisition is implemented, BMR will be granted a 12.5% Royalty interest in the distributable earnings generated by the Project, but only after Jubilee has secured at minimum a 20% return on its investment into the Project and all costs, taxes, liabilities and depreciation of the Project have been accounted for, save that the aforementioned Royalty shall be reduced to 11% of earnings in the event that Jubilee's capital investment into the Project exceeds US$ 15 million.



Apart from an agreed initial 5% Royalty on distributable earnings, BMR will only be entitled to a Royalty payment once:



(a) the Project is fully operational and has generated distributable earnings;

(b) Jubilee (or its nominee) has been repaid in full its capital investment and its agreed capital rate of return of 30% on the first GBP 2,3 million invested and 20% on any further capital invested.”

I’m just going off what the RNS says, I’ve no doubt I’m mistaken in doing so and I don’t also don’t doubt that it’s more complicated than I’ve worked out. I certainly envisage JLP will mark up costs (as they should) and prevent or delay us getting to the stage of receiving a royalty.

Looks like we’ll get a smidgen of 5% of distributable earnings from the off so that will keep Borrelli suited and booted and his bouffant.

I wholly agree that it’s a bad deal and our problems are now just beginning as if it should take JLP 2-3 years I really don’t see how we get there as the elephant in the room (I know there’s a gathering of them) is our financial position and how we fulfill our commitments.

I wish we knew what size plant JLP were going to build in order to have some idea of the level of ROI they are looking at. We were planning 5TPH they are looking to spend a minimum of 5 times as much money (£2.3m originally) does that translate to five times the size or even more given LC says “The enhanced process flowsheet offers the potential to both improved capital efficiency as well as reduced circuit complexity.“

Are JLP changing the process? “ Our process development teams have been able to determine a more suitable process solution for the recovery of lead and zinc in the surface material than the originally contemplated acid and brine solution.” will they have to go through the process of getting an ESIA or an EPB if they are deviating from the signed off licence?

Yeah you’re probably right.I think that’s just for BMR and Berkley Minerals Resources only and flicking back not all records are available.

Neither can I. I’m in shock more than anything.

Amazing how quick they got everything in place on Monday morning considering for 6 months its been near total silence from Borrelli. It’s almost as if it this has been the plan for sometime.

https://beta.companieshouse.gov.uk/company/02401127/filing-history

Try 26.01.18 “Statement of capital following an allotment of shares”

I believe that’s the running total of money raised via placing shares.

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Ran the numbers earlier on today on our new deal, I believe I’m right but you can adjust the amount to be spent accordingly, my figures are based on an upto $15m project CAPEX by JLP

Based on current exchange rate £1 = $1.2946

Based on JLP spending UPTO $15m or £11,586,347.87

Before we get access to any royalties the project needs to pay JLP

£14,133,616 or $18,297,762

My working out....

The first £2.3m spent on CAPEX (or $2,977,642)
They want that back plus 30% before any royalties on the above
So £2.99m or $3,870,935 to be paid back.

So take £2.3m from £11,586,347
Or $2,977,642 from $15m

Leaves £9,286,347 to spend or $12,022,358
They want 20% back before any payment on the above
Which is £11,143,616 or $14,426,827

So add £2.99m and £11,143,616
Or $3,870,935 and $14,426,827

Statement of capital following an allotment of shares on 19 January 2018
GBP 22,733,943.633

From the accounts

It’s in excess of £20m.

BMR once raised £6.6m in one placing.

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