G'day, a copy & paste from a long term Black Ranger...
Join the dots
As the followers of this thread would know, Alex " Moneybags" Molyneux secured US$200 M from Platinum Partners recently and has set about in a methodical way, to advance projects/assets that he believes are unpolished gems . . . . . many of which are uranium assets and related technology ( ie - Ablation )
While you are familiar with Alex's involvement with BLR and Ablation trials, you may not have noticed what is going on elsewhere in Colorado . . . . . namely Powertech and the Centennial Uranium project at the same time.
Azarga acquired its 17.5% stake in Powertech at only $0.07 CAD per share, close to the 52-week low of $0.06 CAD. And Azarga picked up its interest in the Centennial project for a song; the price it paid was only 17% of what Powertech CEO Dick Clement claimed as its value on Powertech's most recent balance sheet.
The "significant value" Molyneux intends to add is likely his promotion of two unconventional mining technologies for the projects: borehole mining and ablation.
Black Range is pushing both techniques for the proposed Hansen/Taylor Ranch project. Molyneux may believe that shifting the narrative of the Centennial project from the controversial in-situ leaching process to the technologies of borehole mining and ablation can rehabilitate the project in the eyes of investors, industry executives, regulators, and local residents and landowners, thus increasing the value of his investment.
Moreover, Molyneux may believe that borehole mining and ablation can avoid the permitting challenges Powertech faced with in-situ leaching.
Food for thought . . . . . . and now just a few short days ago Molyneux has made another decisive move. . . . . . pay special attention to the permitting time frame for Dewey Burdock, which is another of Powertechs projects.
("Powertech" or the "Company") is pleased to announce that Azarga Resources Limited ("Azarga") has agreed to make available to the Company a loan facility (the "Facility") in the amount of US$3.6 million (the "Loan Amount"). The Facility contains features providing for conversion into common shares of Powertech at a premium to the closing price on
The Facility follows Azarga's recent strategic investment in the Company where it purchased approximately 17.5% of the issued and outstanding common shares (each, a "Share") in the capital of the Company on an undiluted basis. In addition, Azarga purchased a convertible debenture (the "Initial Debenture") in the principal sum of US$500,000, agreed to purchase a 60% interest in the Company's Centennial Project located in Weld County, Colorado, and also agreed to form certain strategic alliances with the Company. For more details on Azarga's prior transactions with the Company, please refer to the Company's press release dated August 1, 2013.
Concurrent with the closing of the Facility, the Company will convert the Initial Debenture into Shares of the Company at CDN$0.07 per share, appoint a new director, change certain officers and proceed with closing its Vancouver office. Thomas Doyle and Greg Burnett will resign as directors and the Company will appoint Apolonius (Paul) Struijk, an Azarga nominee, as a director of the Company. Mr. Matthew O'Kane, another Azarga nominee, was previously elected as a director at the Company's recent Annual General and Special Meeting. The Company will also terminate the management agreements with Thomas Doyle and Greg Burnett. Effective upon termination of such agreements, Thomas Doyle has agreed to resign as Vice President Finance, Chief Financial Officer and Gregory Burnett has agreed to resign as Vice President Administration, Secretary. The Company will appoint Richard Clement as the Corporate Secretary and, on an interim basis, Adria Hutchison as the Chief Financial Officer.
Commenting on the new financing deal with Azarga, President and CEO Mr. Richard Clement stated, "We are very happy to strengthen even further our strategic alliance with Azarga. The provision of this financing facility provides the Company with the financial resources it requires to progress through the completion of the permitting process with confidence and clarity. In addition, the closure of the Vancouver office will reduce the operating costs of the Company and will assist us in achieving our goal of receiving the required operating permits at a lowest cost. Azarga has agreed to independently finance the corporate functions performed by the Vancouver office with no diminishment of relations with the Toronto Stock Exchange ("TSX") and shareholders."
Updating on the progress of the permitting process and hearings for the Dewey Burdock project Mr. Clement added, "The Company is making good progress in its permitting activities. The Nuclear Regulatory Commission ("NRC"), in November 2012, issued the draft Supplemental Environmental Impact Statement ("SEIS") that is to be followed by the final SEIS in November 2013. Once the final SEIS is complete, there is a 30-day public comment period, after which the operating license will be granted.
According to the NRC, the completion of the SEIS is on schedule (subject to the length of the federal government shutdown) and publication will follow sign-off by the various departments who have contributed to the development of the SEIS. During the review period by the NRC, the State of South Dakota Department of Environment and Natural Resources ("DENR") has reviewed the Company's application for state permits and has issued recommendations that the three major permits required for Dewey Burdock be granted. Hearings for these permits are underway and approvals are expected by the end of 2013 or in the first quarter of 2014. Also, the U.S. Environmental Protection Agency ("EPA") grants the final mining permits. These permits are expected to closely follow the State permits and the license that will be granted by the NRC."
Credit to Jim Woodward, as I share the following beliefs
As for Powertech, Azarga's takeover of the Centennial project will likely be followed by an announcement that the Hong Kong company believes borehole mining and ablation are better suited for the project than in-situ leaching. IMO
If Azarga successfully gains control of Dewey-Burdock, or Powertech itself, Molyneux can promote borehole mining and ablation for the South Dakota project as well as Powertech's Wyoming properties. IMO
So at this stage, I realise that we haven't heard much about the Ablation trials YET, . . . . . but it does appear that Ablation factor's HEAVILY in Alex's outlook for a large proportion of Azarga's uranium assets going forward.
Join the dots
BLR Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
