Looks like worthless granite to me;
Their allusion to the Teutonic Bore mineralisation refers to the greenstone belt immediately SW of this tenure package. I note, strongly, that the Teutonic Bore sequence does not occur on the tenements subject to this agreement. it's all granite. So there is no VMS prospectivity that I can see, bearing in mind the area is mostly under laterites etc, but the magnetics imply it's all granite. So this is completely false nearology.
Note: E37/1237 is listed as owned by Spinifex Minerals Gold Pty Ltd, but is shown on Augustus Minerals' map as part of the package of tenements subject to this deal. AUG did not list and ennumerate the exact tenement package, tenement numbers and status of the tenements subject to the deal, so I have included it here.
488 sub-blocks worth of tenure.
E37/1447 $5,957 rents due March 2025
E37/1479. $2,576 rents due April 2025
E37/1514 $1,771 rents due 27th March 2025
E37/1531 $5,796 rent
E37/1506 $7,245 rent
E37/1373, $26,070 rents (due tomorrow)
E37/1374 $27,640 rents (due tomorrow)
E37/1375 $27,640 rents (due tomorrow)
E37/1237 $12,699 rents. Total rents equate to $117,394 or thereabouts, per annum, the bulk of which is due tomorrow. This would, ordinarily, become the responsibility of the purchaser to keep tenements in good standing. It is also not explicitly stated whether these tenements are in good standing at the time of purchase, bearing in mind the nett expenditure commitments, below;
Expensive ground, too.
E37/1506, application: 34 blocks, $34,000 p.a. upon grant
E37/1572, application: 58 blocks, $58k p.a. upon grant
E37/1573, application: 39 blocks, $39k p.a. upon grant
E37/1461. Granted 17 jan 2022. 45 blocks, $45k p.a..
E37/1531. Granted 21 Feb 2024. 36 blocks, $36k p.a.
E37/1373. Granted 6th Nov 2019. 66 blocks, about to be in year 6, or $132k p.a. 40% compulsory surrender end of year 6.
E37/1374. Granted 6th Nov 2019. 70 blocks, about to be in year 6, or $140k p.a. 40% compulsory surrender end of year 6.
E37/1375. Granted 6th Nov 2019. 70 blocks, about to be in year 6, or $140k p.a. 40% compulsory surrender end of year 6.
E37/1237. Granted 24th Feb 2016. 17 blocks, in year 8. $70k p.a.E37/1447. Granted 10th Mar 2022. 37 blocks, $37k p.a..
E37/1479. Granted Apr 2024. 16 blocks $20k p.a.
E37/1514. Granted 27th March. 11 blocks, $20k p.a.
This equates to an annual expenditure of $639k p.a. (inclusive of E37/12317; $560k p.a. without). Given the 20% of un-receipted admin one can get away with, poorMCA Holdings and Mr Rodan has had to sink $500K in last year in receipted expenditure. I mean, Augustus in doing its due dilligence will be checking the expenditure of its executive charman's wholly owned subsidiary during due dilligence, prior to completing this deal, in order to ensure the tenure is spent up. Right? RIGHT?
$75k deposit, already blown money.
$200K cash on completion.
$81K in rents the company's got to blow on the 3 tenements rolling over into year 6, where they get 12 months to decide which blocks to keep.
It's like Brian Rodan is just dumping his overly-expansive and superannuated tenement holdings into Augustus Minerals. First was 3,300km2 under the float, and now it's 1350km2 of granite in this package.
I mean, Mr Rodan (via his entities MCA and/ or Redlands) is due to pay $81,370 in rents on E37/1373, E37/1374 and E37/1735
as of tomorrow. No wonder the company did the deal today, 5th November, because the Board of Augustus is doing this at arms length from its major shareholder, and anyone suggesting otherwise should be castigated roundly.
This must be one of the worst deals a company has done this calendar year.
Keep in mind, Augustus still has to keep up its existing tenure in the Gascoyne, which is approximately 3,000 sub-blocks. Total expenditure commitments for AUG is now $3.5M p.a.. But I bet you won't hear a please explain our of the ASX about this sort of malarkey.
