RE: Vutomi19 Apr 2021 11:02
Hi Oilman!
I believe Thorny River belongs to the Vutomi JV, but I can't confirm absolutely.
The original Vutomi agreement RNS dates back to 2017. This is from the RNS:
Terms of the Agreement
Pursuant to the terms of the Agreement, Botswana Diamonds has agreed to pay Vutomi a total of £942,000 in cash, of which £581,000 will be used to fund exploration activities. In addition, the Company will issue 100 million ordinary shares of 0.25p each ("Ordinary Shares") to Vutomi shareholders. The Agreement will be executed in three Phases after which the Company will own 72% of Vutomi. The remaining 28% will continue to be held by Vutomi's Black Economic Empowerment ('BEE') partners. The three Phases are summarised below:
Exclusivity and Option Fee
Botswana Diamonds will initially pay Vutomi an exclusivity and option fee of £122,000 within a period of 60 days, with £61,000 being paid in cash and £61,000 being paid in the Company's Ordinary Shares at a price of 1.9p. A further announcement regarding the issue of these Ordinary Shares will be made in due course. Upon completion of this initial 60 day period, Phase 1 of the earn-in will commence.
Phase 1
Phase 1 will last for a further 12 months, during which period the Company will, subject to available funding, have the option to pay Vutomi £215,000 to fund exploration activities to earn an additional 15% of Vutomi. During Phase 1 Vutomi will grant the Company the sole and exclusive right to fund exploration activities in, on and under the Vutomi Prospecting Rights Area in order to prepare a conceptual mining and development plan. The required mining permits are in place.
Phase 2
Phase 2 will last for a further 12 months, during which period the Company will, subject to available funding, have the option to pay Vutomi £366,000 to fund exploration activities to earn an additional 25% of Vutomi.
Phase 3
Phase 3 will commence within 90 days of the successful completion of Phase 2. Pursuant to the Agreement, the Company will have the option to issue the outstanding balance of 96.8m Ordinary Shares, priced at VWAP, to Vutomi and, subject to available funding, settle Vutomi's shareholders loan accounts of approximately £300,000 in cash to earn a further 32% of Vutomi."
There is confirmation in the RNS of 24th Sept 2019 that BOD then owned 40% of the Vutomi JV.
On reflection, as BOD have never issued the 96.8m shares due to Vutomi to move to a 72% share, that is likely where matters stand now. My guess is that if and when BOD are confident they have a commercial find at Thorny River they will go ahead and exercise their option to increase to a 72% share of the JV. (I.e. The decision is in their hands and depends on the drill results).
Since I missed them first time round, I should add the 96.8m shares due to Vutomi to the fully diluted share base, which would now make 782m (current) + 155.2m (warrants) + 96.8m (Vutomi phase 3) = 1034m shares if fully diluted.
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