To the best of my knowledge official announcements have disclosed the following:
1. Zijin purchased 10m NKP on market. Purchases were not shown on Top 40 lists. I assume that they were hidden in various accounts.
2. Zijin converted $20m of bonds into 200m NKP shares.
3. Zijin has an agreement to purchase 146m NKP shares from Genorah.
4. Forget about the NKP shares held as security over AMED/Genorah debt.
5. Zijin does not hold any shares in Genorah Resources. Shares are held by a number of parties some undisclosed.
6. I am unsure how many NKP Options Zijin holds.
7. There has been no disclosure regarding transferring/sale of any NKP shares or NKP Options held by Genorah in lieu of free carry for the BEE 26% of Garatau Project.One suspects that such a transfer may occur as Genorah does not have funds to contribute towards mine development.
MY EXPECTATIONS
1. The Mining Licence for Garatau Project has/will be officially granted. That's why Zijin advanced the remaining $13m funds.
2. The Anglo/ARM dispute between the DMR and Anglo/ARM has/will be resolved. Beneficiaries will be Bauba Platinum, NKP , Genorah and smaller miners who have cases pending against them in the courts.
3. Zijin will exchange Genorah's NKP shares and options for a free carry of the Garatau Project.
4. Zijin will make a takeover offer for NKP minorities. Price is unknown. Naturally hoping for a fair and reasonable price based upon independent valuation. NKP's assets are worth $billions over 50 year mining duration.
5. The Tubatse dispute between the Bengwenyama Tribe and Genorah/NKP will be resolved rather than years spent in the appeals court. Genorah will take the "hit".
6. IOP (T. Sage) will receive from NKP a token gesture ( say $3m-$5m)for the remaining % of Tubatse.
7. NKP will develop the Hoepakrantz farm with JV partner ARM. Most likely as a goodwill gesture for having the Modikwa Deeps dispute resolved. This was mooted a couple of years ago and may now eventuate. I anticipate that Anglo will exit the Modikwa Mine JV with ARM due to mine rationalisation program.
The above are my exclusive views. Only time will tell if my crystal ball has lied.
Cheers
NKP Price at posting:
9.2¢ Sentiment: ST Buy Disclosure: Held
