I'm no longer a shareholder, so some other shareholder or two should register with DMIRS to do their own research on this. When you register you'll get a pass to all online acess..Mineral Titles, Tengraph and Open file reports.
There were two Exploration Licences bought from Sulphide Resources subject to a 2% royalty. Over the past five years, 4 companies registered mortgages over the titles to cover debts...
CTZ applied for a mining lease over part of the ground about 18 months ago. The mining lease has now been granted meaning one of the old Exploration licences is now dead while part of the other which contains the plant site is still current.
There are no mortgages over the new mining lease, registered in the name of CLZ 100%. Sulphide Resources does not appear to have lodged a caviat over the new mining lease to protect it's 2% royalty, although this is not unusual. (Sulphide may have their interests protected by being a significant shareholder in CLZ as far as we know.
The good news for shareholders is that the current morgagees, will have their interests converted to shares... once the transactions are ratified by shareholders at the next meeting. So the new mining lease will be clean of mortgages. (Untill the NEXT company crisis)
Regarding Sulphides 2% royalty... I believe this is a net smelter royalty...effectively the same as the governments 2.5 royalty. These royalties can take a significant amount of the revenue from gold production if the costs of production are high and profit margins are low.
Sulphide must have a good relationship with CLZ, to allow the mining lease to continue without registering their interest. Did they get sick of waiting for mining to start and maybe swaped the royalty for some other interest, who knows with CLZ?
Myself, I've been involved with a retained free carried interest on gold production from a lease where I did not register my interest and the company has delt in share of the lease (without taking into account my interest resulting in complications where the new party coming in did not know of my interest.) That is why in theory Sulphide should have it's interest registered. Then shareholders can look at the register and know exactly what's going on without having to refer to legal documents from 5, 10 or 20 years ago.
CLZ Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
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