Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Trojan here are the terms of the JV, a free carry all the way to construction of the mine if necessary
4. Key Terms of the JV
The investment by Demir Export will be directly into three special purpose companies (currently wholly owned
subsidiaries of the Company) each holding the relevant licence or group of licences.
The Earn-in Period will be divided into three phases:
• Phase 1: Investment in the Joint Venture Companies by Demir Export in work commitments (except Demir
in-house costs and operator fees) for an aggregate amount of expenditure of €5.5 million plus the costs to
the JV Companies of the MRWC, will earn a 25% interest in each of the JV Companies.
• Phase 2: Investment in the Joint Venture Companies by Demir Export in work commitments (except Demir
in-house costs and operator fees) for an aggregate amount of expenditure of €4.5 million plus the costs to
the JV Companies of the MRWC will earn an additional 15% in each of the JV Companies.
• Phase 3: Investment in the Joint Venture Companies by Demir Export for the additional funds required to
reach Construction Ready Status will earn an additional 17.5% interest in the JV Company which has reached
Construction Ready Status in respect of any Licence thus increasing Demir Export’s holding to a total of 57.5%
in that JV Company.
Conroy, after Construction Ready Status is achieved, may either retain its 42.5% interest in that JV Company by
participating pro rata in the expenditures for mine construction, or avail itself of a number of options including
diluting its interest being carried for the expenditures through to commercial production with a “Carry Loan”. If
Conroy avails of this option, it will retain a 25% interest in that JV Company with repayment of the loan from 50%
of the net profits due to Conroy within a maximum payback period of six years. Demir Exports sole recourse in the
event of non-payment of this Carry Loan is Conroy’s shares in that JV Company. Alternatively, it can have its
interest in such JV Company converted into a 2% net smelter revenue royalty
These are people in the know and their not insignificant shareholding. PI's just no patience to wait a few weeks for drilling updates to start flowing in. I'm happy to hold position here confident Demir would not be throwing around millions without earning back MANY multiples.
Professor Richard Conroy: 3,194,036 (8.14%)
Patrick O’Sullivan: 3,000,000 (7.64%)
Philip Hannigan: 2,011,577 (5.12%)
Paul and Michelle Johnson: 1,686,255 (4.29%)
His last interview on Sunday Roast resulted in the share price doubling so I really don't agree on that one. They are in the hands of Demir so he can't answer precisely on timelines until that sanction it. However Demir are a hugely professional outfit with massive resources so I'm really not worried.
Good update from the prof:
- $1m euros to be received within next few weeks if not days.
- expectation that gold mine at Clontibret will be FAR ADVANCED by end of 2022 (8 mins into interview)
- already have 500k oz recources ready and thats just at limited depths.
- preliminary econominc assessment already in place.
- free carry on financing and bankable feasibility survey a formality.
- 3,000 m drilling just the start
- min work requirement to be carried out on other licenses.
- rapid progress expected on clay lake potential.
- Demir to be permanently on site moving forwards
- timeline graphic of works coming soon but works progressing as quickly as possible.
All permissions received / licenses transferred for the JV to complete and $1M euro will now be paid by Demir and drilling will commence to get to MINE READY STATUS.
There has always been additional planning permission as part of this to actually have a working mine which should happen in conjunction with the drilling. In a previous interview the prof expects MINE READY STATUS to be reached by end of 2022.
DS it's his trade if he says its a buy then he should know it was incorrectly classified. For what it's worth I was doing dummy sells this morning and best price was 24.26. IMHO all the trades above this price this morning were in fact BUYS.