Member Info for news

Here's the link to check:
https://www.australianmining.com.au/news/core-lithium-gets-to-work-on-landmark-finnis-mine/
"Core Lithium gets to work on landmark finnis mine."-Australian Mining.com.au, 30 Sep 2021.

If the link is faulty, CALL up the title and it will show up.

By the way, Finnis lithium project has also 2 CHINESE involved ie Yashua and GANFENG.

Daz423
I have NOT posted incorrect info on Finnis. I have just checked :
"CORE LITHIUM GETS TO WORK ON LANDMARK FINNIS MINE."-Australian Mining.com.au, 30 Sep 2021.

"After FID [Final Investment Decision] - 1 ST P R O D U C T I O N PLANNED FOR E N D OF 2 0 2 2."

According to your link WHICH IS OUTDATED, you said CONSTRUCTION BEGIN IN 2019???

You have NOT been following the story. My memory serves me correctly. Some other articles quote an earlier date for FIRST PRODUCTION ie a bit earlier than END 2022. I have to check when I have the time from their latest RNS.

So, all spodumene mines REQUIRE capital and it is UNDERSTOOD from what I said, it was
CONSTRUCTION once FID is taken. From discovery to mine - IF ONE CANT GET THE CAPITAL then the time is flexible given the price of the metal is also of interest ie scoping cost vs metal price.

FOR THE AVOIDANCE OF DOUBT: Daz, you tell us that CONSTRUCTION STARTED IN 2019.
The RNS's stated that it will be END OF 2022.
So, your info is WRONG AND OUT-DATED.

A/c to the Scoping Study , the cost is $688 for spodumene.[Saw on Twitter #prem]
S P Angel quoted spodumene [Cif China] yesterday as $2,710.
So, there is no chemical plant etc to process it into lithium carbonate/hydroxide.

Finniss [Core] is also in spodumene and it did NOT take 6 yrs + to get the mine running. There have been a lot of announcements but i think in total it will take 2 years max from recall.

Kindly check and do DD. Wed, 23 Feb 2022.

Thanks.
On Twitter, #prem thread, Andro ..is commenting to Brickmaster abut this same point .

On the other PREM forum, Wainey also got the same idea as me about procedural per George on Z$ and US$?

I started listening at mid-point. Is Geoge saying the discussion is at the "PROCEDURAL" step ie Z$ to US$? Thanks.

George R. on Stockbox, 22.2.22:

"Consistent drill results continuing to filter thru.
DISCUSSIONS continue with potential PARTNERS. [plural]."

"- On strike" [Means the drill results].
"Many, many more to come re: bore holes."
Question was asked about COMPARABLE DEALS and George said he would be in trouble if he answers that. Why? That could be considered to be providing ....?
"Procedural."

Interesting that there are PARTNERS, PLURAL.
Well, we have looked up all the M & A ourselves to get an idea but thus far no M & A for £78 million which is the MKT CAP OF PREM FOR 20.1MT @1.06% Li20 in the market?

rock mne in Mali for $130 million. "-Fastmarket, 15 June 2021.

Ganfeng will help LMSA raise $64m and provide up to US$40m in direct finance assistance."

So, total deal is 130+64 [raise] +40= $234m.
The total SIZE of grossed to 100% to see deal size is =$234 x 2 = $ 4 6 8 million.

GOULAMINA
https://www.mining-technology.com/projects/goulamina-lithium-project/
31.2Mt @1.56% Li20.

Just to illustrate INDUSTRY NEWS OF M & A - the recent 100% Acadia takeover by Huayou was for $422 million for about the same size resource although grade is a bit higher at Goulamina.
So, M & A does illustrate indications of deal types.

Since then, French are leaving Mali [post this t/o].

PREM
20Mt @1.06% Li20.
EPO [2 drill results released on 21.2.22] with potential upgrade of resource?

---Illustrates the different styles of 100% takeover by Huayou [Chinese] and Ganfeng [Chinese].
The Ganfeng deal with BCN for 29.9% stake & 22% direct stake in project was posted yesterday.

Now, to wait for the PREM next RNS relating to what PREM released yesterday, 21.2.22:
"Our current objective is to secure DIRECT TRADE INVESTMENT into Zulu from a potential L E A D I N G I N D U S T R Y P A R T N E R .* [[PREM RNS, Mon 21 Feb 2022] Due diligence is continuing per the RNS?

Found out from a Zimbabwe Newz site that Sino had invested in Prospect's Acadia. Bikita exports PETALITE used in ceramics. They are exploring whether their SPOD is commercial. So, that is the reason given that Bikita was t/o was not for the spodumene as its petalite.

Zimbabwe's Acadia lithium mine fo $422 million. What you need to know."-Newzwire.liv, 24.12.21

"Prospect decides to go a different rout in seeking a NEW INVESTOR. They open up a bidding process.. OUT OF 7 BIDDERS, co decides to go with Huayou, biggest producer of cobalt.
Co's like Prospect -harder to raise capital on world markets. Price paid was a 78% Premium on Prospects 10 day AVERAGE price." Article also says that due to capital raising harder from world mkts, smaller co's sell out.
--
Shows that PREM is also going the Prospect style ie seek NEW INVESTOR given today's RNS, 21.2.22 : " Our current objective is to secure DIRECT TRADE INVESTMENT from a potential LEADING INDUSTRY PARTNER." As said, George R, CEO said in an interview on PREM's Twitter feed that there are 14 parties interest, mainly Chinese.

Daz423
Let us look only at Zimbabwe and M & A ie Acadia, Bikita and Sino - ALL TAKEOVERS.
So, as a country jurisdiction, the CHINESE LIKE IT as all are Chinese acquirers.
In the Acadia deal at $422m, thats from Huayou.

So, who the LEADING lithium industry player is per PREM RNS, one has to wait as there is no use in putting out a name at this time.

No, whilst the DD is being done LIKE NORM, I have NOT yet checked into HOW LONG IT WILL TAKE as it needs legals etc. I dont have the time to check the GANFENG - BCN initial 29.9% + 22%+ [cash direct interest and interest in the project]. When this deal was announced, it did or may NOT have included the EPO.

So, the drilling is for CONCEPT proving or if there is an upgrade, we have to wait to see how
the details of the deal plays out. As I said, IRR further drilling was PAID for.

KOD and Mali has nothing to do with PREM - the jurisdiction is different and the terms different.

So, the current deal may be also CASH ON THE TABLE VIA A DIRECT INTEREST and maybe also an interest in the project -OFTEN CALLED ECONOMIC INTEREST. Shareholders in BCN should have known that with 29.9% direct interest in BCN [paid £14.4m cash] and 22%+ interest in the project, it appeared OBVIOUS that the project MAIN OPERATOR would be Ganfeng. That's what happened ie taken over.

No point in trying to decifer at this point as we have seen the different styles of the Chinese and they are not in Zimbabwe to give out JV's in the FINALITY. However, they go step by step as seen in BCN.

Mon, 21 Feb 2022.
Yes, they could pull out but any examples of this in Zimbabwe? Yes, there is ALWAYS a first time so no denying that. But today's PREM RNS said DD is continuing ie BEING PROCESSED?
George 's interview per the PREM Twitter is that there are OTHER PARTIES - I think he said 14 so lets take 1 step at a time via RNS. DYOR.

RB, all standard lingo in an RNS.

Have a read of Ganfeng and BCN. They needed China's approval as well. Same as Sino with the latest Zimbabwe deal to take it over.

Due diligence is currently happening per RNS and as always it needs to go through the process, same as the MORISSON supermarket takeover or other takeovers. Wording all similar.

If agreed, then RNS will say so and if no, also RNS'ed.

George wants the "LEADING INDUSTRY PLAYER" so he said there were some 14 parties in his video interview. OK, that's all from me.

DYOR.

"Firefinch & China's Ganfeng FID for Mali lithium project."-Mining Tech, 4.1.22

Ganfeng will provide $40m as loan or arrange a 3rd party debt up to $120m. Initial bank debt financing up to $64m. DFS was dated Oct 2020. JV 50%/50%.
----Since KOD was brought up, the only deal done in Mali is the nearby Firefinch.

One can see that in Zimbabwe, there is NO such deal per Acadia, Bakita or Sino. All were taken over. Moreover, as one can see in the Firefinch deal, the original DFS was the deal although
there is NO mention of further upgrades/drilling etc.

In IRR's case, yes, there was further drilling but from recall paid for.

So, the PREM RNS of today, 21.2.22 does not suggest that George wants a NON DIRECT INVESTMENT TYPE DEAL like in Mali.? French are leaving Mali and therefore, different geopolitics - this was mentioned on Twitter etc?

The ongoing potential industry partner : "Our objective is to secure direct TRADE INVESTMENT into Zulu from a potential LEADING INDUSTRY PARTNER" relates to the CURRENT RESOURCE.
The extra drilling results from the area away from the main resource may or may not
be subject to this direct trade investment.

Only a further elucidation if the deal goes through will enlighten further. 2 drill results can be indicative as norm of concept drilling as norm. Most times, it is a drill of 3.

Brickmaster84
George did not want to be taken over earlier. So, yes, in theory, a party could step in to offer 50% or the usual 40-45% premium to PREM. George alluded to being offered to sell earlier.

Whilst George may want to retain Zulu with a significant enough stake, he must know, that like
the Ganfeng-BCN situ, there is always the potential that it is taken over at some point. That's their style thus far. As the M & A shows, only George's Zulu is left of the bigger names of lithium in Zimbabwe.

George was right to play it by way of drilling further on the extended land at Zulu to INCREASE resource = more attractive to the industry player. Well timed by George in this regard as it can only help in negotiations.

INDUSTRY PARTNER
Will they offer to take a 29.9% stake in PREM as well as a direct interest in the Zulu project?
We shall have to wait to see. BCN got £14.4m cash at 25p and the shares shot up to 28.75p when Ganfeng took 29%+ in BCN's Sonora as well as a direct stake in the actual project as well of some 22%+.

I dont think George wants a IRR [Ghana] deal with Piedmont in that NO MONEY on the table except 50% stake carried which includes capex and studies as well. IRR or Atlantic Lithium on 19.11.21 had a RESOURCE OF 14.5MT at 1.31% Li20 but the MKT CAP now is at a WHOPPING £238 Million. PREM's current resource 20Mt @1.06% Li20 with a market cap of £78 million.

My reason for posting is to take in all the M & A in Zimbabwe and see what George will do next in terms of negotiation with this industry partner. I think George's wants WONGA as the RNS stated: "OUR CURRENT OBJECTIVE IS TO SECURE D I R E C T TRADE INVESTMENT INTO ZULU FROM A POTENTIAL L E A D I N G INDUSTRY PARTNER."

I am sure George is aware that NONE of the lithium players in Zimbabwe have been LEFT to develop in a JV FINALLY as the M & A shows. So, that is something George will have to consider otherwise he will have to go it alone which he does not want to go this way.

For me personally, I like to see how much give there is via mkt cap. Towards the close of the last dying mins today towards the market closing, it was NT for even 200,000 shares and MM's offered only 100,000 shares worth £400+.

No one knows except George and we await news via RNS.

P.S.
I happen to see the figure given to a national paper of NPV $5 billion from recall by the group.
If one checks the NPV of the JORC for BCN's VENTANA [1st stage mine area], it is just over US$1bn [$1.25bn].

"Bacanora Lithium accepts Ganfeng's $391m takeover."-Mining.com , 27 Aug 2021.
It was paid in CASH and the final sweetened offer was for 73.6p per this article. Call up the title to read and check.

So, $391m vs $1.25bn NPV with the risk of clay as said and nationalisation + Capex challenges.

REM offered BCN £1 but that was rejected by BCN as inadequate. So, shareholders rejected that as well.

So, that's the factual account.

Bickmaster84
Since you addresss me by name, let me provide a courtesy reply. I am not a newbie in PREM and never have been. In fact, I provided the article wherein George, CEO gave an interview to the Zimbabwe news agency which later had to be RNS relating to media speculation which was CONFIRMED by PREM [indusry partner].

The PREM RNS of today mentioned "potential leading industry partner" and therefore it appears ranked.

As for Bacanora, yes, the shareholders believe they have been short. However, if you look at the NPV of BCN's licence, Ganfeng paid a % of this NPV. Its history now but I recall it is in the 50p region without the Zinnwald bonus shares for free. Unfortunately, there were NO other bidders for a COMPETITIVE BID and shareholders [inc traders] were given the premium over the sp. A known theory that a bid IS X, Y, Z over current sp. Lastly, BCN at the time were NOT able to RAISE the huge capex on their own and the later stages involve even more capex.

Lastly, SONORA's clay a/c to the Mexico Chief Geo stated that thus far NO COMMERCIAL lithium has been produced from clay. So, that is GANFENG's PROPRIETARY tech which they would NOT DISCLOSE even to the Mexican govt.

Right now, in recent times, there is more talk of the MEXICO GOVT WANTING TO TAKE GAN'S LICENCE for national strategic purposes so the risk is always present.

Given these factors, I think if BCN shareholders wanted more, then they would have to TAKE ON EXECUTION RISK hence the discount. I noted that the sp price calculated was high as there appeared to be a MISTAKE as some took the whole Sonora project including the 2nd greater sonora area which was not subject to the takeover and of which BCN never OWNED 100% but it was 30% REM/KDNC. How can I NOT have known or followed the story when I was in REM frwom inception after DL took the Sonora project on to finance?

LoL. That is history now.

Any example of Chinese top lithium producer and how they operate? I can only think of one.

"Bacanor Lithium shares jump as it brings in Chinese giant Ganfeng as partners at Sonora."-Poractive Investors, 20 May 2019.

"CASH injection of £14.4m from Ganfeng , the world's largest lithium metal producer. Ganfeng will INVEST at 25p for 29.9% stake in BCN and will ALSO take a 22.5% DIRECT STAKE in the Sonora project. BCN + 7.5% higher at 28.75p."

PREM RNS, 21.2.22: "Our current objective is to secure DIRECT TRADE INVESTMENT from a potential LEADING INDUSTRY PARTNER."

An example from the past as BCN has been taken over by Ganfeng -history now.

Another lithium project taken over by Sinomine, HK unit in Zimbabwe at US$180m.
Sinomine will take over 74% and increase it to 100%.
---
So, only PREM's Zulu next for news as per RNS today, 21.2.22 [Mon]
--
Both Acadia lithium project and Bikita taken over by the CHINESE. George, CEO did say that the interest is from the Chinese in the main.

"Huayou buys lithium mine in Zimbabwe for $422m."-Reuters, 22.12.21
The Acadia lithium resource: 3 7 . 4 1 Mt @1.22% Li20.
https://www.mining-technology.com/projects/acadia-lithium-project-harare/
["China Ministry clears takeover of Zim lithium mine.-NewsZimbabwe, 18.1.22]
--
PREM ZULU RESOURCE [LITHIUM IN ZIMBABWE]
20.1Mt @1.06% Li20.
At 0.41p, MKT CAP £78 Million.

Simple maths, the Acadia deal translates to $226 Million [20.1Mt] or £166 Million [E1=US$1.36] if one looks at Zimbabwe M & A lithium latest deal at Acadia as a potential EXAMPLE.

NEGOTIATIONS
PREM RNS, Mon, 21 Feb 2022: "Our current objective is to secure DIRECT TRADE INVESTMENT into Zulu from a potential LEADING INDUSTRY PLAYER."

So, both PREM and this potential party would be discussing or discussed M & A etc for fair value as NORM besides all the other factors. Also, today's PREM RNS drilling results could mean a FURTHER RESOURCE UPGRADE to possibly come from the area outside the immediate resource at Zulu.

Mon, 21 Feb 2022. DYOR.