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However as a measure of prudence Circums BOD's are also taking certain steps in the background in readiness to develop the project into a mine in the event the outright sale option becomes unattractive.
For obvious reasons it’s a strategy that any shrewd BOD’s would adopt. That is not wanting interested suitors to believe an outright sale is the only option being pursued.
At the end of the day going this route the outcome will depend upon what a suitor is prepared to pay for the opportunity and what circum are prepared to sell it for. Nothing more and nothing less.
Given some major shareholders paid $2 or slightly more for their shares I imagine an offer would need to be somewhere between $3.00 and $4.00 per share for negotiations to start. So between $12.5m to $20m or thereabouts to Prem.
If there is more than one buyer in the frame each one will know that and will want in the end to give their offers their best chance by submitting the best offer they can. They will most likely have been told what number their offer needs to start with and why shouldn’t th
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The IPO route did look likely to me up until the recent update. But now I think quite the opposite. I feel some of the interested parties are now seeing the potential in Danakil may be improving. Their consideration appears to have moved on from wanting to be a substantial investor to one wanting full control. This is the reference in the update that’s persuaded me to change my mind:-
“The company is, however, doing some preparatory work including debt and offtake workstreams for an IPO in the background and should market conditions change, this option could be activated.”
Going the IPO route the Government have invested in and largely completed the necessary infrastructure works. Capex debt finance has been all but arranged. Capex equity finance is either being resolved too it seems or provisionally agreed. Permitting has been granted and the team is in place and so on.
Arguably at present Prems shares can be substantially valued at over US$10 million. The substance being the latest price at which Circum has accepted subscriptions
As a comparison there is a benchmarking exercise to do against the neighbouring Danakali potash mine in Eritrea. Whilst that’s interesting Danakali is a few years ahead of Danakil. It's much smaller too and is a j.v. project. All of those factors make quite a difference. A valuation on this basis would put Prems investment much higher than $10m. So I think a valuation on Circums last subscriptions whilst the safest way to value Danakil it’s probably too conservative and misleading.
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Alternatively again when Danakil is producing 3.5m/t’s of potash in a steady state in three to four years time the mines “Earnings” should be about $300m at todays MOP & SOP prices which suggests its Market Cap should be near $3bn to $4bn at that point in an earnings metric equation using a P/E ratio of at least 10 to reflect its attractive LOM.
Working that back on a reasonable ROI I get to a value at IPO of approximately £750m. Prems holding could be diluted in percentage terms to 2.5% going that route. For simple maths that would put the value of Prems holding at around $17.5m which would result in an addition of 0.15p per share to Prems shareholders!
It seems there may be a lock - in period for the shares possibly needed to maintain an orderly market. For how long and if it’s necessary will be at the behest of the funders we’re told. That being the case it’s unlikely to apply to all shareholders and perhaps not Prem if its holding falls below the 3% trigger of “significant shareholder”.
Setting aside the length of this post I hope some of the thoughts I’ve shared in this overview are of interest.
This is a genuine and rare opportunity for Prem shareholders to benefit to the extent of as much as 0.15p addition to their shares before this Christmas IMHO but please DYOR as always.
GLA all genuine shareholders
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This post is related to RHA. It'll be boring to quite a few. Especially LTH's as I think they will probably know more about the mine than I do. Apologies upfront to those but hopefully I can jog a few memories of the events over the last seven years or so.
As an overview RHA is located approximately 20 km south-east of Hwange and 270 km north of Bulawayo in the prospective multi-commodity Kamativi Tin Belt in north-west Zimbabwe. It sits in its own licence area of 1800ha or 4400 acres which is roughly five times bigger than Zulu under its current license area and slightly bigger than the Scilly Isles for perspective.
Picture the scene of a disused and long abandoned mine in the middle of the Zimbabwean countryside as it was when Prem first saw it in 2012. The site was overgrown and the old shaft there must have been like an old well full of foul smelling run off rainwater . The shaft was accessible via two adits one North and one South which were relatively small but clearly visible. They still exist and are in use today I believe.
Crossing the mining area was a low ridge approximately 850 m long and 300 m wide standing about 120 m above its surroundings.
There was known to be mineralised ore body that included wolframite and copper in a strike approximately 400 m long and 150 m wide. Grades of the WO3 were found to improve in a south easterly direction towards the existing shaft and at depth. Seven Lodes were identified and they were previously exploited early in part in the mines 100 year history.
The old mine workings were in the form of an underground mine with two adits, open pits, caved stopes, trenches, roads and rock dumps that occupied the surface. Tailings and dumps were located on the north and south sides of the ridge and complete the picture.
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RHA comprised 50 mineral claim in the 1800 Ha, consisting of 10 owned by Prem and 40 under option.
Small-scale surface and underground mining was conducted at the site between 1931 and 1979, with total production from the mine is standing at 1 247,65 tonnes of WO3 in concentrate containing 65 percent APT.
Intermittent small scale mining was carried out at both RHA and the adjacent much smaller Tung mine (which Prem had an option over at the time) between 1931 and 1979. The mines jointly produced 1,247 tonnes of wolframite concentrate at an average concentrate grade of 65% WO3. So perhaps 80,000mtu was produced at RHA which today would have a sale price of just $210m.
The mine workings were almost entirely carried out during the 1930s where the underground mine which was accessed via the two adits in the sides of the ridge and a single vertical shaft down to the 845m level. Some open pitting was also carried out mainly in the western part of the strike.
During the mid to late 1970s Falconbridge Ltd, trading as Blanket Mines in Zimbabwe, carried out underground geological mapping and extensive channel sampling on the accessible parts of the underground workings, principally on the 926, 895 and 859 levels. Their exploration work had to be curtailed . But undoubtedly this mapping together with any previous data would have formed an integral part of Prems due diligence and would have helped in the preparation of RHA’s first Scoping Study which was to be completed later in 2013.
Prem joined the AIM market mid December in 2012 and by that time it had purchased RHA in a j.v. with the Governments Fund NIEEF by necessity.
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The j.v. had been formed under a Letter of Intent at the time and Prem through its subsidiary owned 49% of the mine in keeping with the indigenisation law that was in place.
Early in 2013 saw further drill results announced as RHA was working towards a SAMREC code compliant resource and it’s PEA or Scoping Study as it’s also known.
In August that year Prem announced RHA’s PEA that confirmed its SAMREC compliant resource.This was the first milestone for the mine un it’s j.v.’s ownership.
The study was minimalist and simply based on an extension of Lode 2 out of the 7 Lodes identified at the mine. Lode 2 then became known as Lodes 2A for the original length & 2B for it’s extension.
Nevertheless the Assessment confirmed the economic potential of Lode 2 in isolation demonstrated it would support a tungsten mining operation with an annual Run of Mine rate of 192kt’s from an open pit and underground mining strategy over a six year LOM from just $13.5m Capex.
Other projected fundamentals such as an NPV of $118m an IRR of over 300% and Free Cash Flows in excess of $20m/annum were equally encouraging at the time.
Tungsten prices were then almost twice what they are now at around $400/mtu APT and that figure was the one used in the study. All very acceptable if not attractive.
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The j.v. had been formed under a Letter of Intent at the time and Prem through its subsidiary owned 49% of the mine in keeping with the indigenisation law that was in place.
Early in 2013 saw further drill results announced as RHA was working towards a SAMREC code compliant resource and it’s PEA or Scoping Study as it’s also known.
In August that year Prem announced RHA’s PEA that confirmed its SAMREC compliant resource.This was the first milestone for the mine un it’s j.v.’s ownership.
The study was minimalist and simply based on an extension of Lode 2 out of the 7 Lodes identified at the mine. Lode 2 then became known as Lodes 2A for the original length & 2B for it’s extension.
Nevertheless the Assessment confirmed the economic potential of Lode 2 in isolation demonstrated it would support a tungsten mining operation with an annual Run of Mine rate of 192kt’s from an open pit and underground mining strategy over a six year LOM from just $13.5m Capex.
Other projected fundamentals such as an NPV of $118m an IRR of over 300% and Free Cash Flows in excess of $20m/annum were equally encouraging at the time.
Tungsten prices were then almost twice what they are now at around $400/mtu APT and that figure was the one used in the study. All very acceptable if not attractive.
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The j.v. had been formed under a Letter of Intent at the time and Prem through its subsidiary owned 49% of the mine in keeping with the indigenisation law that was in place.
Early in 2013 saw further drill results announced as RHA was working towards a SAMREC code compliant resource and it’s PEA or Scoping Study as it’s also known.
In August that y
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Most significantly really good news ensued shortly after Prem joined the market. It came from discovering a significant new Lode extension in late in 2013.
Further drilling was carried out on what was then identified as Lode 2A until December that year. Some extremely high grades were identified as well as many new WO3 veins in the Lodes. The results were then RNS’d on 13th March 2014.
These drilling results were stella and they rocked the market to its vore as no doubt some long term shareholders invested at the time will recall.
The grades were consistently higher than had been previously identified. But the highest was a world record testing 35% WO3. More than 350kg/t. Simply incredible and jaw dropping. Hitherto the j.v. partners were looking at grades of 0.8% or 8kg/t as exceptional.
The new Lodes were categorised as Lodes 1E.1W.1FW & 1FE and were announced in a further RNS on May 1 2014. The discoveries were to increase the resource by a further 1.3mt’s at an average grade of over 1% or 10kg's/t. A huge increase and the overall effect on RHA was transformational.
This is what the press had to say:-
“The measured and indicated resource has been upped by a staggering 957% to 1.55mln tonnes at a composite grade of 8.0 kg/t WO3, while there is 1.2mln tonnes at a composite grade of 9.7kg/t WO3 in the inferred category.”
http://zimbabweinvestor.com/premier-african-minerals-soars-on-massive-zimbabwe-resource-upgrade-agrees-ethiopia-bridging-loan/
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The period that followed up to the time when RHA was put on care & maintenance in January 2018 would see a myriad of further changes to the resource and mining plan. The changes wern’t all brought about just by the ongoing route in APT prices and the difficulty of raising debt finance especially but those two factors clearly had quite an influence.
Mostly they came about from RHA gaining a much better understanding of the mineralisation on the site through further exploration and drilling campaigns. An understanding that has been costly and time consuming to say the least.
I could go on and on but let's fast forward to where are now. Now we have a much better understanding of the resource and in particular where the higher grades of WO3 are located in the underground mine.
Although the existing pit is covered by a layer of blown in silt and debris we know from drill results that the strike runs generally in an East/ West direction and the WO3 grade improves on strike towards the existing shaft and at the same time at depth as new blocks have been identified.
We also know that that is a small amount of WO3 located in the old tailings and that that is readily accessible and easy to deliver to the ROM pad to compliment the rest of the WO3.
Although Prem haven't disclosed a new mining plan yet it seems the mine will be restarted more or less where it left off with the added bonus that it’ll be electrified from the grid.
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Hopefully with higher grades being accessible from the newly cut stopes the mine will be profitable shortly after it restarts.
As with any mine RHA needs to be optimised and then run in a steady state.
When the mine restarts mining will be restricted to underground via the old shafts and adits. The anticipated fundamentals include a ROM of 6kt's/month at a grade of around 0.7% at least hopefully.
To completely optimise the mine it needs further investment the new semi automated incline shaft built. Once built that will not only allow the mining rate to be increased to more than double but also allow unfettered access to mine the pit.
When that's done in say a years time.the ROM should be around 40kts /month and subject to APT prices we should see a contribution to Prems MC from it of perhaps £60m even at suppressed APT prices. If APT prices were to be around the $400/mtu APT forecast by many industry experts it will be an extremely attractive asset for Prem. Perhaps as much as 1p on Prems SP as things stand.
So FWIW I think we'll see Commercial Production reached within a month or so of the mine restarting and at that point RHA's impairment removed.at that point I have Prems fair value of the asset at $20m which represents 0.15p on its SP.
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In cash terms Prem should begin to receive an income under its newly negotiated Rental Agreement and its new Management Contact incorporated in the head Shareholder Agreement on RHA. From the old agreement I have those combined to be over $750k/annum. But I'm not entirely sure. Payments to Prem under its Loan Agreement needs to be considered too but as yet the details are undisclosed..
I hope some of this is of interest. But more than that I hope "RHA has its day in the sun" as GR tells us.
AIMHO and fingers crossed.
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My simple way of looking at things tells me we may want to consider Prem now in milestones and on just the projects that are centre stage. Those being RHA Circum Zulu and MNH.
The other apples on the tree including the REE at Katete however are growing nicely. But for me they're too green yet to pick. They're worth remembering though for sure and Katete may yet prove to be as significant as Zulu in its own right!
Prem owns 25 mining blocks at Katete with significant grades of REE. Some of which have virtually doubled in price this year. So huge potential behind the scene but given what Prem currently has on its plate perhaps it's best left for now.
It isn't clear yet what deal if any between Prem and MHN we as shareholders are going to be asked to consider and vote on. Whatever the fundamentals may turn out to be it seems both Prem and MNH see the merits. MHN want a route to the markets which Prem can offer and on the flip side Prem are looking for a cash generative asset as it always wanted and seems MNH are in a position to offer that from its manganese mine Otjozondu.
The $80m/annum revenue figure being bandied about for MNH's Otjozondu manganese mine could well be a conservative one in my view. It’s a forecast that's derived from MNH's latest presentation and it represents a calculation of revenue at a time when the mine should be running in an optimised and steady state in a little over two years time.
It’s could well be conservative because it’s based upon a production of 500k/t'annum of 35% grade Mn Concentrate. That seems about right but it's based upon today's commodity price for Mn at around $500/t with no uplift for the rallying commodity. Furthermore we're lead to believe Otjozondus manganese is of premium quality and therefore in theory it should be commanding a premium price. No allowance has been made for that either.
My best estimate for the mine at that stage assuming it will have little or no debt and probably be paying no Corporation Tax using The Gold Councils cost categories is roughly $190/t for"Cash Costs", $250/t " for All In Sustaining Costs" and $300/t for "All In Costs". Corporation Tax has been excluded as it’s unlikely to be payable in the early years. However a small Royalty has been allowed for as usual in these circumstances.
So perhaps out of the $80m/annum revenue just over $50m/annum could be costs. Even so the mine could well be running with a Market Cap of $300m on that basis and if MNH say reversed into Prem in a deal worth 25% of the mines notional Market Cap to Prem Otjozondus contribution to Prems SP would be 0.50 to 0.60p . I’ve simply used the 25% figure as an example.
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It's worth saying I think the 500kt's production rate will I think be set by how much Mn Concentrate can be shipped by road from the mines production area to the freight rail head some 50km's away.
It's unfortunate that there isn't a rail link into the mine and I doubt very much road trains could be considered. So it's likely to come down to transporting the Concentrate by road in the short term at least although the economic incentives to build a rail link are there looking at the extent of the potential resource.
Perhaps more significantly for us near term is according to MNH's letter to its shareholders that Otjozondu is on track to produce 200kt's of Concentrate by this Christmas which is less than ten weeks away now. As that time it could be throwing out $7m to $8m positive cash and more than double that by Christmas 2020 as it ramps up to optimisation in the following year.
That would be very nice for Prem and us as shareholders. It would more than likely bring in over $3m in cash in addition to its loan repayments of $1m. So by my count that's $4m cash for Prem nest year. On paper the notional deal would boost Prems SP by at least 0.1p possibly 0.15p when it's executed in the coming weeks. I have it that would increase to something like 0.35p by Christmas next year and finally to 0.50p to 0.60p in two years or less as things stand.
No doubt the EPO award on Zulu will help to facilitate a deal with MNH as will Prems much improved SP. But a deal won’t be conditional upon the EPO or the SP now in my view It's Prems overall near term potential which will be the decisive influence I think..
It’ll be interesting to see what the mines fundamentals are when the deal is announced as I’m confident it will soon after the EPO nes is RNS'd. If it's anything like what I’ve detailed here MHN looks a very attractive opportunity and deserves its place as just one of four Prem assets taking centre stage in Prems portfolio at the moment. The others being RHA, Circum and of course the mighty soon to be even mightier Zulu!
AIMHO and fingers crossed
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I'm a long term holder in Prem and like so many LTH's I've been underwater with my investment for quite some time. It's been a difficult stock to hold for most of the time I must admit.
So I know only too well what it feels like to be in a loss situation and it's certainly far from nice! Even more so if you're late in your working life or retired as I am now and have less time to make any losses back..
I used to share my thoughts quite a lot on the BB's but in Prems case I decided to stop it.
The BB's and social media became increasingly full of keyboard warriors who relentlessly and openly criticised fellow posters for not seeing things their way. Or they continually blamed Prems management for their losses all day seemed madness to me.
Anyway in the relative peace and quiet over this weekend I thought I'd share some of my own current views with you at what looks to be a pivotal time in Prem's development.
Prems been in the Doldrums for various reasons for roughly two years now and for the last four months wallowing in the mire as they say.
To put that into perspective for most of the last four months Prems Market Cap has been less than the current value it holds in RHA's plant. So not much more than £2m. So that too has been utter madness.
There was lots of scaremongering about placings and even talk of Prems bankruptcy. Perhaps I was naive but I never saw bankruptcy as being on the cards. Nowhere near it in fact despite what some who purported to know it all were saying.
Ostensibly there are only two tests for companies to pass to achieve "going concern" status. One being the overall asset value exceeding the value of overall liabilities. And the other being the ability to pay debts as and when they fall due.
Any other minor tests or variants to the two I've mentioned you can forget. Of course in Prems case it passed them with ease. Its assets out value it’s liabilities many fold and with that kind of ratio it’s always able to raise all the cash it needs to pay it’s debts if and whenever it needs it at short notice regardless of it’s the cash balance in it’s treasury.
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Significantly but not often mentioned Prem didn't carry any debt for most of the period and it's only of late that it's undertaken a "friendly loan" for $350k. On the other hand, it's been a Creditor on RHA's books for many $m's and it's now a lender to MNH for $1m too. So effectively a nett creditor to others and with no debt. Find me another like it as they say!
So in fact unlike any other miner in its class on AIM it has huge potential and as I say negative debt ratios. A very significant advantage to most and a huge tick in the investor checklist. Take a minuite to think about it!
Like most progressive companies Prems development will follow a logarithmic curve. So with it's development rate slowing the further it moves along it and being initially at it’s fastest. The opposite in fact to an exponential track which hopefully we'll be seeing it's earnings follow.
What sets Prem apart from most others though is it's starting point on the development curve. It started from a negative asset base. Most others do not. That in itself and quite apart from it’s assets gave its SP more imputus!
We can see the benefit from this in Prems position now. Prems Market Cap was no more than £2m three months ago and it's now at about £17m. So even though it's only just started and has huge potential it's 8 bagged in little over three weeks! The SP would have done the same but for dilution so it’s been just a 6 bagger!
So if you had invested £10k when the SP was on its lows just a few weeks ago would have bought you 40m shares or so and those you would be able to sell those same shares because of their high demand on Monday for over £60k when the market opens.
I've been buying heavily in the lows but to my mind Prem is only just taking its initial steps along it’s development curve. So there's no way I'm even thinking of selling any yet. There's huge potential here over the next few months in my view and I'll be posting again with substance and maths over the weekend to demonstrate it.
GLA Genuine holders.
Agreed IQ. The events likely to have an impact on Prems SP in the next two to three months include but not exclusively:-
1) The deal with MNH. It's highly likely to happen now and it will undoubtedly be good for both parties. MNH’s mine is now producing positive cash flow and by Christmas MMH have told its shareholders it will be producing 200kt’s of concentrate at 35% grade Mn, The maths in this opportunity has it contributing to Prems SP by about 0.15p at that time.
2) The electrification and restart if RHA together with removing it's impairment. An event that almost certain to happen. The maths has this contribution again at least 0.15p to Prems SP.
3) Circums Corporate Action in an IPO situation or more likely an outright sale. We're told this is in she duke to happen this year.The maths has this contribution to about 0.10p to Prems SP.
4) Management restructuring. Difficult to say but it has to be worth 0.10p on Prems SP
5)Then there's a potential j.v.deal on Zulu and lifting the impairment too. With the right deal that could easily add bring a contribution of 0.30 to 0.40p to Prems SP on its announcement. The Government would have needed to know Prems plans to match their criteria.
In to begin with Prems SP were to be 0.20p say and we add all the constituent parts we get to Prems SP of 1.25p within a few months
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The $80m/annum revenue figure being discussed for the Otjozondu manganese mine is a conservative one in my view. It’s one forecast by its owners MNH at a time when it should be running in an optimised and steady state in a little over two years time.
It’s conservative because it’s based upon an output of 500k/t'annum of 35% grade Mn Concentrate which seem about right but uses today's commodity price for Mn at around $500/t. Furthermore we're lead to believe Otjozondus manganese is of premium quality and therefore in theory it should be commanding a premium price.
My best estimate for the mine at that stage assuming it will have little or no debt and probably be paying no Corporation Tax using The Gold Councils cost categories is roughly $190/t for"Cash Costs", $250/t " for All In Sustaining Costs" and $300/t for "All In Costs". Corporation Tax has been excluded as it’s unlikely to be payable in the early years. However a small Royalty has been allowed for as usual in these circumstances.
So perhaps out of the $80m/annum revenue just over $50m/annum could be costs. Even so the mine could well be running with a MC of $300m on that basis and if MNH say reversed into Prem in a deal worth 25% of MNH’s notional Market Cap in turn Otjozondu contribution would be 0.50p to 0.60p to Prems SP as things stand. I’ve simply used the 25% figure as an example.
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It's worth saying I think the 500kt's production rate will I think be set by how much Mn Concentrate can be shipped by road from the mines production area to the freight rail head some 50km's away.
It's unfortunate that there isn't a rail link into the mine and I doubt very much road trains could be considered. So it's likely to come down to transporting the Concentrate by road in the short term at least although the economic incentives to build a rail link are there looking at the extent of the potential resource.
Perhaps more significantly for us according to MNH's letter to its shareholders is that Otjozondu is on track to produce 200kt's of Concentrate by this Christmas . So it could be throwing out $7m to $8m positive cash in just a few months time and more than double that by Christmas 2020 as it ramps up to optimisation and steady state running the following year.
That would be very nice for Prem. It would more than likely bring in over $3m in cash in addition to its loan repayments of $1m. So by my count $4m in 2020. On paper the notional deal would boost Prems SP by around 0.1p at least when it's ratified in the coming weeks or few months. I have it that would increase to something like 0.35p by Christmas next year and finally to 0.50p to 0.60p in two years or less as things stand.
No doubt the EPO award on Zulu will help to facilitate a deal with MNH. But a deal won’t be conditional upon the EPO in my view.
It’ll be interesting to see what the mines fundamentals are when the deal happens as I’m confident it will and quite soon. It it’s anything like what I’ve detailed here MHN looks a very attractive opportunity and deserves its place as just one of four Prem assets taking centre stage in Prem at the moment. The others being RHA, Circum and of course the mighty soon to be even mightier Zulu!
AIMHO and fingers crossed.
Jeremiah99 you've asked me quite a few questions in your most of which I'm unable to answer.
Unfortunately I'm neither a PDMR or a CAP for the purposes Article 19 of MAR so I've no idea if the £1m raised was spent on anything other than the categories we were given in the RNS.Viz:-
"Advance current exploration programme at Zulu;
Flowsheet optimisation through further bulk metallurgical testwork. Increase and upgrade the existing Maiden Mineral Resource Estimate
Advance discussions with strategic groups.
General working capital."
From what you've asked you appear to have assumed the Open Offer was to raise money for future drilling on Zulu when that's not what the RNS tells us or infers per sa. If I've misunderstood what you're implying I apologise. But if I have that right then given most of your other questions cascade from you view they become redundant.
FWIW I think the exploration programme at Zulu to date is easier to understand if it's considered in two phases. Phase one was done on the Main Zone and included 2500m of drilling to get us to Zulu’s Scoping Study.
Phase two was carried out to delineate the potential additional resource in newly discovered strikes and bring them up a SAMREC compliant resource. It included over 3600m of further drilling most of which in not all must have been completed at the time the money was raised in November. One of the strikes was an extension to the Main Zone but three were in Step Out Zones appropriately categorised at the time as SOZ's 01 to 03.
The Pegmatites in the Step Out Zones were shown to contain predominantly very high grade Li2O in Spodumene with very little Petalite and Lepidolite encountered. Assay results from ZDD-45 was particularly noteworthy where a length of Li2O having a bonanza grade in excess of 4% was identified.GR is quoted as saying “Not often is a grade of 4.24% Li2O seen in drill core” There would have been Tantalum present too no doubt but to date it's extent is undisclosed.
The additional strikes identified in SOZ’s 01 to 03 ran up to the boundaries of Zulu’s existing licensed area and by interpolation far beyond. This as well as a “walkover survey” of the adjoining land by experts could well have encouraged Prem to apply for the EPO we're now seeing. In his recent Proactive interview you may recall GR saying that he believed the additional EPO area was on strike as it was quite a significant and encouraging comment. If you take the additional area of 22,000 ha under application as having a similar density and grade of Li2O then Zulu if developed will be proven to be the largest hard rock lithium mine in the world. Not just marginally but as things stang by a factor of at least four.
So overall my personal conclusion is that the money raised in the Open Offer in November 2017 wasn't to pay for future drilling at Zulu and that it was used appropriately to pay for the categories of expenditure listed.
If on the other hand you believe Prems