Member Info for NorthernShark

Chart - the rest of the phase 1 results as well!

Forest, I disagree. We have the licences which we have acquired and are owned by JLP. In my opinion they have looked at the results from M and available information about the region and want to participate.

They want to accelerate the exploration and development by bringing cash, experience and expertise.

The licences we have are not worth anything until surveyed and drilled. This deal brings capital to support this, and more importantly expertise in regional development. They are also potentially putting a lot of cash into it as well which will speed up development times.

You may disagree and that's fine, but would be careful about throwing words like conned around. Why would the directors recommend it unless there was a good strategic rationale for it?

ATB Northern

As I understand it GLR have the interest in the Molefe licence only. All the other licences around M are owned by JLP.

The suggested investment is to accelerate the exploration of the licences around M and has the backing of some seemingly experienced explorer/operators of district scale resources. Why wouldn't we do this? If they make discoveries similar to M (i.e. close to surface and easier to mine) then we could have substantially more material to fill Sable and in short order which substantially increases overall profitability. Given the amount of licences secured then there seems to be a very high degree of confidence from the geologists.

I appreciate anything which is dilutive sends some people over the edge but in this circumstance when it comes with expertise and someone who can also provide a challenge to Leon is something which on balance I would welcome.

My opinions only as a private shareholder with no links to the company. ATB Northern

"We got into this situation cause LC bought assets he does not know how to monetize."

By that logic SirB you would surely welcome an investor who has a track record of developing and monetising similar assets

Frog, I do have my concerns as well given some of the lines which have been spun in the past. I would think Leon is on thin ice with investors at this stage and tangible progress is needed!

Junior, I think you have hit the nail on the head. My question is around what is the opportunity at Greater M. Shareholders have been given minor bits of information to join up the dots. If the money from this expands the exploration at pace and brings an investor experienced in big copper plays then I would be all for it. Leon needs help and also holding to account which I would think the potential large shareholder would do.

Sumo, if you don’t like it then vote against. Simple

Fair point Gotreal - re-reading it I think I am barking up the wrong tree. Still useful and relevant experience however which could be helpful for future plans

BottomsUp, also interesting to read about Capstones use of Jetti technology to process low grade copper waste...

Shareholders will get a vote - the rationale will be put forward. If you are a shareholder and disagree then vote against. If you think it is a good idea then vote for it. Quite simple really.

Snippet from the merger of Capstone and Mantos in 2021

A Unique Opportunity to Unlock District Scale Synergies for Mantoverde and Santo Domingo

Mantos’ existing Mantoverde operation is located approximately ~30km southwest of the Santo Domingo project

Infrastructure synergies include opportunities to share critical off-site items including desalination plant, power, roads, pipeline and port facilities, providing economic benefits and a reduced environmental footprint by avoiding unnecessary duplication of water and transportation infrastructure

Excess electrowinning capacity at Mantoverde to potentially process Santo Domingo oxide material and additional low-grade sulphides enabled by Jetti catalytic leach technologies which Capstone has been first to implement on a commercial scale at Pinto Valley

Potential cobalt plant at Santo Domingo also enables additional cobalt production from Mantoverde while by-product sulphuric acid production can be used internally to further lower operating costs

Looks like the right sort of experience for a regional play and makes sense for Capstone for further geographical diversification. Jetti leach technologies is also an interesting line.

ATB Northern

If the offer had come from a pure finance house I would be more worried. There is a rationale to having a £5.8bn market cap copper producer as an investor. We were never going to be able to explore greater M quickly by ourselves. Interestingly they mention getting more licences beyond the 29k ha we already have. Must be very confident in what the geologists are seeing.

That said they will need to justify this before the EGM so I would hope for more drilling results and/or early aeromag findings.

ATB Northern

Agree Shuvlin, we have potentially very good assets acquired at the right time in the right place as far as I am concerned. Just need a resource statement from M or the LWP to get the market to wake up to what we have in place!

ATB

Northern

Iluvise, I understand they have secured more than the 16k (I think I recall 25k mentioned)

"The extension identified to the eastern boundary provides a strong indication of the further continuation of the mineralised reef, particularly given the additional approximately 12,300ha of exploration ground we hold to the east of the 400ha Molefe mining area".

I think these licences are 32913 (Munkoyo), 41100 (Under Sable Zinc Kabwe) and 40947 & 40948 (under Grosvenor Resources) plus a granted application for 41099 for Sable Zinc.

So the question is which licences to the west have they secured? 41226 under Crimson Ridge Mining could be a possible. One for the Molefe presentation hopefully!

ATB Northern

My understanding is there will be a resource report once the phase 1 results have all been completed by the lab - still 1252m left to analyse. This is why it was drilled in the first place - to demonstrate to the market whats there and provide the mine plan detail.

Then there will be an update to the resource estimate once the phase 2 drilling has been completed (on the basis the extension is there as they expect).

The one which should also be ready to go is the LWP resource which from the RNS on 19.02 "The results from the resource review have confirmed the scale of the project and details of the results from the review will be provided to shareholders once the final report is issued, expected within Q4 FY2026."

Each of the three resource estimates should provide the market with enough information to place a value on the resources in the ground. So in summary I expect some decent catalysts in the coming weeks and months ahead.

Depends on your timescales. The “market” prices things wrong all the time. Fact is the world needs copper and a lot of it. Those drilling results on a property which cost $1.5m looks very good to me

Sumo, what part of the phase 1 drilling results were a damp squib?

"Forgot there was another payment to make!"

Pretty much sums up your understanding about Jubilee there Sumo. Keep up the good work old chap

Disappointing reaction it has to be said but there is also a war on and investors are generally very nervous.

The more JLP firm up the asset base the more value will be assigned to the company. Production helps but the asset base is also a major driver of value.

The LWP, mine plan and phase 2 drilling will all add to the asset base valuation - all of which should be public knowledge within a month.

However, major step forward today and hopefully the first of many in the near term.

ATB Northern

Jonah, if you look at the depths, they were not drilling deep enough to hit the sulphide level (in most drills anyway). No reason to suspect its not there but the focus has been one the near surface Oxide which drives the short term mine plan especially at the grades found in the drills.

More work to firm up on a resource but not many companies see grades like those mentioned and they don't know where it stops yet...