Ann: Equity Investment and Strategic Cooperation and Offtake MOU, page-90

Yesterday I made the point that AEV may be fully funded for the initial 10kt* via the trial mining pit, if the $2,9m Mine Security is waived or delayed.

On 24/10/23, AEV announced it received mining authorisation for DSO.

Key bits:
The authorisation allows the commencement of mining activities for an initial 40,000 tonnes of ore, covering the test pit and early stages of the DSO Project

The authorisation provides conditional approval for the remainder of the DSO Project.

This authorisation approves:
1. The initial test pit targeting 5,000 tonnes of marketable DSO material* (5kt in the announcement v. 10kt first shipment of BPH from 2010 trial pit) ;
2. The commencement of the DSO Project, to mine an estimated further 35,000 tonnes of ore;
3. Surface grade control drilling to support detailed mine planning for the remaining DSO operations.

I then consulted the Mining Management Act 2001 (NT)... as you do.

It says:
"37 Duration and conditions of Authorisation
(1) An Authorisation is granted for the period and subject to the conditions specified in it.
(2) An Authorisation is subject to the following conditions:
(a) the operator for the mining site to which the Authorisation relates must comply with the mining management plan in force for the site;
(b) unless the Authorisation relates to the Ranger Project Area – the operator must:
(i) provide a security of the amount, in the form, and on the terms, specified in the condition; and
(ii) pay a levy of an amount specified in the condition;
(c) any other conditions the Minister considers appropriate for the mining activities specified in the mining management plan."

And...

"43A Calculation of security
(1) The Minister is to calculate the amount of security to be provided by an operator by reference to the level of disturbance likely to be caused by the mining activities to be carried out under the Authorisation granted to the operator.
(2) A regulation may deal with any of the following:
(a) a minimum amount of a security to be provided by an operator;
(b) procedures relevant to the calculation of a security;"

My conclusions are twofold:
1. Mining approval is conditional on payment of the security
2. The security payment for the initial 5kt may have been calculated as part of the $2,9m and has been paid.

None of the recent announcements specifically state something along the lines of: fully-funded to begin DSO

Does anyone else have any thoughts on this?