Member Info for Poppyseed

Further on new life on the HMS application, I think I've uncovered the document behind the change of Status I referred to the other day. Just to recap, I had noted the Status had changed from "Studies Pending" to "For Noting" on 20 May 21 after a long period of the application seeing no signs of. progress.

For those that want to check for themselves, use this link and see the date of 13 May 21:

https://sahris.sahra.org.za/search/site/Walviskop?f%5B0%5D=bundle%3Aheritagereports

Which takes us to a list of documents, one of which is an "Updated Report - Jan 21"

https://sahris.sahra.org.za/sites/default/files/heritagereports/CTS20_036_PHS_Whale%20Head%20Minerals%20-%20Heritage%20Screener%20Jan%202021%20%281%29.pdf

Then note the non-contentious conclusions and recommendations by CTS Heritage Specialists now going to the DMR ahead of their ultimate decision:

"RECOMMENDATION:
? Based on the information available, it is unlikely that significant intact archaeological resources remain on the site and as such, it is unlikely that the proposed mining activities will impact significant archaeological heritage however should any archaeological resources be uncovered during the course of the proposed mining activities, that work must stop and SAHRA and an appropriately qualified archaeologist must be contacted to assess the significance of the uncovered resource to determine a way forward.
? It is recommended that, while no further palaeontological specialist studies are required, the attached Fossil Finds Procedure be implemented for the proposed mining activities due to the sensitivity of the fossils that may be impacted by this proposed mining activity.
? Should any MUCH resources be identified during the course of the proposed mining activities, that work must stop and SAHRA and an appropriately qualified MUCH specialist must be contacted to assess the significance of the uncovered resource to determine a way forward.
? These recommendations must be included in the EMPr"

Given that it's an existing well established mining area, it's very hard to see anything but an imminent positive outcome which I believe, based on anticipated earnings, will in itself justify more than the current market cap.

Hi tp, as I say, I don't know what it means exactly, we must make of it what we will. However, what it means to me after 11 months of watching paint dry on the lack of progress of the application is that there is finally a sign of life, very much as has been indicated by the company for a while now but which I was previously seeing no evidence of.

Google easily confirms the backlog of SA's mining licences and the disarray of their Ministry of Mines. Like it or not, it is what it is and the solution is not in KZG's hands and has needed patience but I do like to check for myself that we're not being sold a kipper! For example, the Company says and Google confirms that the matter has been raised in their Parliament and that a new wind can now be expected.

As I understand the process, in the simplest of terms, nothing happens unless and until the Heritage Resource people first approve the mining from the point of view of environmental disturbance or disruption be that shipwrecks or marine life or whatever. I think there was unlikely to be a problem in general because the Alexander Bay coastline has been mined for decades but each specific area needs a heritage and environmental report and approval before the Ministry of Mines would grant overall approval.

From the website, this process seemed to get stuck in the Heritage part of the process last June despite a letter signed off by them at that time appearing to give their approval subject to the miner needing to report any discoveries during the mining process. At the time, I had thought this would then progress quite quickly thereafter and I think KZG would have had reasonable grounds to think the same BUT then came the effects of the dreaded covid!

Anyway, what I was reporting earlier was the first sign of life after 11 months and that got my eyebrow excited! While I don't know what "Status - For Noting" means, for me, it has a bland, "case closed from our point of view" sort of feel based on the content of their last letter available to the public at this time:

https://sahris.sahra.org.za/sites/default/files/casedecisions/Proposed%20Walviskop%20beach%20mining%2C%20Port%20Nolloth%2C%203rd%20interim%20comment%20June%202020.pdf

More generally, the whole case and the substantial and detailed submissions in respect of it can be accessed here. From the list at the bottom, I would commend anyone to open and read the detail that goes into such an application. It certainly helped my general understanding as to why things can take so long to be approved:

https://sahris.sahra.org.za/cases/proposed-walviskop-mining-port-nolloth

Tick, tock.... Re the HMS Mining Application, I see that after 11 months of saying "Status - Studies Pending" on the SA Heritage Resource website, it has changed today to say "Status - For Noting".

I don't pretend to know what this means exactly but it is definitely a first positive indication of progress after a very long time of tracking on my part and the new status sounds to me like pretty bland, non contentious, finalisation sort of stuff.

Approval of this mining licence alone will be massive for Kazera's future and I think the quantum of the near-term cash generation value is not generally appreciated.

Align put it like this Waterloo:

"...The issue has been priced at this sort of level to reflect the company’s net asset value when taking account of developments and prospects in the diamond and HMS operations – although the statement this morning stopped short of saying as much..."

Interesting to see the German connection to the feldspar testing in the light of us now knowing that the funding originates in Euros from a German bank. Namibia does retain strong German connections though from previous colony days so maybe not that surprising.

From KZG website:

The Company manages and operates the Tantalite Valley Mine (TVM) in Southern Namibia, near Warmbad in the Karas District. The mine has one of the highest grades of tantalum ore in the industry reporting grades exceeding:

25% in tantalite
4% in lithium with a flotation plant extension increasing potential up to 6%
12% in feldspar to supply high quality ceramics and glass smelters

I think what you're looking for tucson is the RNS from 1 Dec last year with the exploration results:

https://www.lse.co.uk/rns/KZG/namibia-update-and-overview-fbufa1t88vg8g9a.html

As the RNS suggests, the processing of the tantalum ore will produce the additional lithium and feldspar products as part of the same processing so these extras are kind of in for minimal extra cost.

Once just seen as a fairly worthless by product for Kazera, this is what KOD had to say about Lithium this morning while announcing near-approval of a licence application:

"... to be in control of a high-quality, pre-production lithium asset with the market dynamics as compelling as they are now. Kodal continues to monitor the lithium market and notes that the lithium (spodumene concentrate) price has risen strongly from its lows in 2020 and further, that there is widespread analyst consensus of supply deficits from as early as next year. The powerful lithium demand drivers linked to battery production include Government stimulus, as well as from major vehicle manufacturers and public utilities..."

Strong SP reaction too but, unlike Kazera, they're nowhere near to having a producing mine!

Badsterman, Kazera has long said it has all the necessary approvals from both government and landowners for the pipeline and water outtake so, always assuming that is a fact, I don't see any issues with that side of things. What has held it up is the financing of it and that seems to be about to be solved with the £8m incoming and the pipeline is a core part of it.

The last time I saw the approx cost was in an Align note on 24 Nov 20 and was put at US$3-5m. If true, that's not a whole lot out of the c. US$11m the funding is set to raise so appears to leave plenty of scope to fund other bolt-on ventures, already alluded to by the company, apparently likely to be completed at the same time as the funding e.g. "...This investment into Kazera by the Namibian investment partners is part of a much larger group of strategic investments which is expected to complete at the same time..." and "...We will also be able to continue exploring other opportunities available to us and to accelerate progress on our recent investments in South Africa..." and "...As soon as we are able to start mining Heavy Mineral Sands we anticipate generating substantial profits which will enable us to fund future development, both in South Africa and Namibia...". I sense a certain growth ambition alongside the existing exciting projects the money will provide oxygen to!

Meanwhile, here's a link to the particular Align note that covered pipeline and plant improvement costs:

https://www.alignresearch.co.uk/kazera-global/kazera-global-blue-sky-potential-of-a-world-class-tantalum-mine-perfectly-positioned-for-the-new-green-economic-revolution/

"...Just add water

We have never had any doubts about the quality of the asset, which is a demonstrably high-grade tantalum project in Namibia. Ok, so far, commercial production has been elusive at the mine due to a lack of water. A 13km pipeline from the Orange River would solve this problem, coupled with some plant upgrades, and cost US$3-5 million. Now investors can begin to see that the plan to utilise the potential cash flows from diamonds and HMS to provide the funding runway to fully develop this large-scale world class tantalum opportunity is beginning to be successfully unfurled.

The impressive progress on the ground in South Africa seems to be matched with developments in Namibia. Matters seem to be hotting up at this world-class tantalum play with compelling news as regards the financing for the Orange River Pipeline. Already, potential investors have been on site and successfully completed their due diligence investigations. It does seem that events could be moving rapidly ahead here as Kazera is now in advanced negotiations with no less than three major Namibians investor for a substantial equity investment into the company...."

Never forgetting that the investment is said to be "...part of a much larger group of strategic investments which is expected to complete at the same time..." which may also be needing a few i's and t's to be crossed.

Indeed gmed. This from 17 Jan 20:

"...Water Management

In efforts to reduce diesel usage, the Company has endeavoured to utilize solar panels to power all water bore holes across the property. Additionally, the Company has installed a bulk diesel system directly at the village generator which enables the Company to have access to 50 days of energy supply from the generator and become much more energy and time efficient.

For further efficiency gains, the Company has now electronically measured all bore hole depths ensuring all solar pumps are the same depth and have installed a low-cost submersible pump at the main pump station. Kazera has maintained the original lister diesel engine as a backup system while reducing the everyday diesel consumption to our main pumping station.

Additionally, Kazera has installed water meters at each bore hole and pumping station in order to monitor water feeds daily. This assisted the Company in successfully passing a recent site visit by the Namibian Government's Geological Department who monitors water throughout all mines in Namibia...."

So no reason at all why the mine cannot be reopened and commence a reasonable level of production now that, as Jackruss suggests, the forward outlook for full scale production has changed and can scale up significantly with the commissioning of the pipeline, rather than waiting till then to press the Go button. In this way, the ramping up phase will already be seen to, thereby clearing the pathway to a fast track scale-up in due course.

Doesn't shorten the distance, of course, but I always liked this picture from the top of Signaalberg to put the task into a visual perspective:

https://twitter.com/KazeraPlc/status/1291463663157751808/photo/1

Warrants are money coming in! Like it or not, they're a consequence of last summer's placing, without which we would not have diamonds and HMS to look forward to. They had a 2 year term and so will no doubt be seen being regularly converted over the next 12 months and will raise a further £750k or so for KZG as a consequence.

So more cash to add to the pile and most of the c. 75m new shares will be issued to the Align/Jennings stable who, happily for us, would seem more likely to add them to their major holding rather than dump for a quick turn as others might normally do.

For sure steven, the completion of the water pipeline in due course will be the key to everything major there but was just saying it's great to hear that they're reopening the mine even at this early stage, not sure anyone was expecting that so quickly.

Great news! Well done BOD and everyone, patience and frustration of long termers will now be rewarded.

Fortitude did mention speed recently. How many were expecting the mine to be reopened so quickly? No waiting a further 12-18 months for the water pipeline then? Marvellous!

In effect there is but it's called an agreed negotiated funding - for around £8m @ 2.7p equivalent, from Namibian investors, mostly in the form of CLNs with a 7 year term! Why wouldn't that be enough? Seems to me, if they needed more, they would have only needed to ask as part of the deal they've already agreed.

Just wish those bankers would get their fingers out or it'll almost be time for the second tranche before they draw down the first! The SA licensing lot could do with a rocket too but I suppose what's a few weeks more for a company-making transformative event, to paraphrase Align at their best!

Kazera featured yet again, very bullish, chart apparently sees 3.5p by the end of next month. Reckon the fundamentals are pointing us that way too assuming the finance arrives as expected:

https://www.share-talk.com/share-talk-bulletin-board-heroes-wednesday-7th-april-2021/#gs.y7oqqk

https://www.share-talk.com/share-talk-bulletin-board-heroes-thursday-1st-april-2021/#gs.xrtaqj

Next trading day is the new tax year. Guess some of the new ISA money could land here.

Ongoing strong German links indeed tucson, my German cousin emigrated and has a farm there.

Going back to the MoU licences, my research notes tell me that Manshaft are also connected to another couple of licences not mentioned in that RNS so if any of this thinking is correct, seems there's scope for more additions.

The funny thing about the EPLs already mentioned in the 1 Dec RNS is that research on one of them takes me to a certain person whose name I should probably keep to myself but suffice to say, a person of the same name happens to have a very senior and relevant position in one of Namibia's oldest major banks. Just can't get away from the sense that the dots are all about to join up.

"...Pursuant to the terms of the MoU, Manschaft has granted the Company an exclusive right to evaluate each of the EPLs with a view to partnering with Manschaft to exploit the minerals present therein..."

I know what you mean Animal but not totally surprised. It takes time to be noticed and gather momentum after a while in the doldrums. Many will have previously jumped ship with open wounds and new passengers may need to see ink on the boarding pass before taking to their cabins.

Yes, re the Namibian Investor. In fact, because of little giveaways referring at times to "...the Namibian investment partners..." and reference to being"...part of a much larger group of strategic investments which is expected to complete at the same time...", I would not be surprised if it's a company or a group of companies rather than one or more individuals and possibly already holding assets they see Kazera as being well placed to take forward?

For example, see the 1 Dec RNS, could it be Manschaft Mining and Energy? Could the MoU have been a first stage while KZG reviewed the outlined assets and their development prospects ahead of the funding agreement being finalised? Manshaft, eh? Does that sound German to you? Oh, what was that? The funding is in Euros and the sending bank is in Germany? Maybe not so crazy an idea, eh? Could be wrong but, as I keep saying, look for the clues!