DRG NOTES4 Oct 2017 11:04
• seems BML's interests include Cobalt and Lithium in Botswana. It also seems that BML was in a JV with BCL Ltd, the refining company that recently went into liquidation. That liquidation has clearly impacted upon the JV which is now on hold.
• So is all this just coincidence or is BML looking to offload some of those licences which were previously part of the JV? Cobalt and lithium in Botswana, very interesting. Take a look at the https://hotcopper.com.au/threads/ann-investor-presentation.3512451/?post_id=25534929#.WW1WgU3mqUm
• if the links are right Luke and Pelamis was the KOD combo, luke joined here but has not left KOD and pelamis are the major shareholder here, I would imagine KOD didn't want to take another asset but have decided to use DRG is the vehicle for it. all links to the recent Liquidation of BCL, and Botswana metals plays with them. So plenty of major resources available at the moment in a sale like fashion. links also to Luke Bryan setting up Kalahari metals before joining here, which was a name change from Botswana metals as he first registered. So all fingers pointing towards these links
• Here's a summary of the jv position between Botswana metals and BCL
Under the Farm-in Joint Venture Agreement if a party becomes insolvent (including being placed in provisional liquidation) then:
(a) during the earning period (until a party has formally earned its interest) the solvent party may terminate the farm-in by notice to the insolvent party;
(b) if a participant has earned its interest then:
(i) the solvent party may compulsorily acquire the
interest of the insolvent party at an agreed price or, if a price cannot be agreed, at a price recommended by a qualified person as the fair market value of the interest; or
(ii) if there is no acquisition of the insolvent party’s interest, the joint venture can be terminated and the assets are to be realised and the net proceeds, after paying any liabilities of the joint venture, are to be distributed to the participants in proportion to their interests.
It seems that BCL has earned its interest and so (b) applies. Looks like a question as to whether a price can be agreed or whether a qualified person needs to be appointed to decide.
IN SUMMARY.
From the breakdown of our research we are looking at a very clean shell with Luke Bryan at the helm with links to KOD and Pelamis. £600K in the bank so plenty for a deal as we saw at KOD. Pelamis have plenty of available assets to put in here esp. in the gold sector, also maybe a play for KOD marc2 with another lithium asset. From a purchase point of view we could take assets from North river resources or Botswana metals who are both cash strapped or we could JV with Botswana metals. Plenty of option here and the links are really strong to a few things – Gold, lithium, cobalt and copper. Administrators are selling assets off, Luke setting up Kalahari metals 5 days before the placing
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