RE: Game on..4 Jul 2022 15:11
Had a discussion with AT today. Have to say I feel somewhat embarrassed for having a go at him about the lack of news and progress etc. He remains determined to do a deal or start small scale production at Zanaga and is working many hours with no salary to achieve that. Having a go at AT is shooting the messenger. He does understand the frustration at a perceived lack of news and the current share price though.
Obviously he could not say too much given we can only discuss things in the public domain. I get the impression small scale production is perhaps more likely than a takeover at least to prove up the resource and quality before a takeover further down the line. I raised my concerns about lack of cash and delisting. He does not deny it's a high risk investment and you should not put more in than you can lose but he stated if they pull something off shareholders could see a much better share price than the current one. Again he cannot speculate as to what figure share price. He also said Clifford has 27m shares so a deal could set him up for life and he is not giving up. There are ways ZIOC could raise money if they wanted to but they do not feel they need it currently and are mindful of shareholders.
AT believes the loan from Glencore shows they are keen to do something with Zanaga and when i asked how often Clifford or himself speak to Glencore I was told every week. Not much response when I said I cannot understand why nothing has happened then. Regarding the loan, he did not seem worried that Glencore could pull the rug and said there are various protections for ZIOC. I asked specifically if we are on the list of 13 Glencore assets for sale, no real answer but I asked AT if Clifford can make sure he asks on his next call with Glencore! I definitely got the impression as people have stated here that Glencore won't proceed with something unless they are happy it's a good deal and at the right time / iron ore market sentiment. AT doesn't believe the ZIOC market cap will impact a potential deal value. Glencore would be happy for a strategic investor to take majority control of the project so that doesn't seem to be an issue.
Covid hasn't impacted work on the ground and I was told there are still people on the ground maintaining the site, doing ESG and looking after roads. However covid has impacted having any potential interested parties being able to visit the mine. It is also still not possible to travel to China for in person meetings.
I asked why we didn't get an RNS to say discussion have ended with COIDIC. He said because they have never officially ended their interest though he admits they have had changes on the COIDIC side and I got the impression not much if anything is or has happened on that for some time.
In summary, I am encouraged work is still going into achieving a good outcome for shareholders and the communication with Glencore is still regular. I think it will be a 7am bolt from the blue if something happe
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