Ann: Nzuri Raises $6M to Advance Kalongwe Copper-Cobalt Project, page-32

Hi @columbo I think the reference to the Huayou comment is such that Huayou haven’t been allowed to increase their stake in Nzuri at this price (25.5c)


Huayou were able to take their 15% at the above price and haven’t let things slip either way. If they were not interested at all thy could of just said “No thanks”. I would assume they were offered in on the AVZ raise but declined considering they got in very cheap and early on.


Nzuri management and Tembo also haven’t allowed them to increase their portion of the company either. Remember Huayou is a $9 Billion USD company, I’m sure if they wanted they would of easily taken the $6 million raise themselves.


If they did do this they would of gained a much larger percentage than their current 15% (off the top of my head say 20%) this would have then meant that IF a takeover was to occur they now are really only bidding for 80% of Nzuri and not 85%.


Let’s keep it simple and say Nzuri sold for $1 a share in the future and had 300 million shares. 80% of 300 million shares is $240 million they would have to pay. Nzuri management have kept them at 15%, therefor 85% of Nzuris 300 million shares is $255 million.

If they took up the whole $6 million raise themselves (100% of the raise) instead of only $1 million they got (15%) they could of effectively saved themselves $10 million ($15 mil sale price difference - $5 mil cap raise difference =$10 mil) if they were to purchase us at $1.


Remember from @mineralised posts we have enough ore for them to process for some 10 years at 40% capacity now, that’s without further increases to our reserve. 40% for 10 years of a $9 Billion USD company is very attractive, especially at these cheap levels.


The Chinese are smart and they won’t over pay, they also know a good opportunity when they see it. I’m just glad that management restricted their portion, effectively Tembo telling them “if you want this, then pay up for the lot, no cheap entries to bully others”.


As for the mining code I’ll let others cover it, I’m just glad it’s done, yes finance will be slightly tougher to get, but it does not dent my confidence in this company at all.


From my discussions with management it seems that the main dining hall/Mess area may be built in the coming weeks! Things progressing nicely on the ground.