Robot42,Here's some points that were all in the public domain &...

Robot42,

Here's some points that were all in the public domain & I know I brought forward some of my concerns.

Tried to summarise a 143 pages down to 2.

Happy for you to counter..But these are not my opinions by Azgara, Blackrange & an Independant auditor.

Also Buc, re your last post, I can't believe that was you primary out take from a 143 pages .

Sorry for any typos, I also referenced the pages.

What follows are not my interpretations, but direct quotes from the notice.

I tried to keep it as short as possible, but it was 143 pages summarised to 2.

If you can't see that this has been crafted then why aren't you selling the shirt off your back to buy truck loads of shares at the current gift price of .006/.007.

Are you all happy with this outcome as it was all in the public domain.

Azarga potentially owing up to 42% of the company depending on how the chips fall is both good and bad depending on how you view it.

At least we know why the price has been held at .006/.007 for the past weeks.(IMO)

Doesn't intend to change anything on BLR should they be successful, but reserve the right to do as they want when they want

P 8 These present intentions may change as new information becomes available, as
circumstances change or in the light of all material information, facts and
circumstances necessary to assess the operational, commercial, taxation and
financial implications of those decisions at the relevant time.

P9 So big of them to be a white knight buying the conversion shares AT A PREMIUM TO THE CURRENT WVAP (go figure) wasn't there a substantial holders notice of selling during the period prior to this notice.

How would you feel if you shares price was say 2.5c or better and Azarga bought them at a 71% premium???Better?

So a dilution if you vote YES from your current 79.79% to 57.93%

Even the Independent Expert's report claim


The Independent Expert’s Report concludes that the transactions contemplated by Resolution1 are NOT FAIR but reasonable to the non-associated Shareholders.


BLR has another bill to pay - STB funds to full fill the option on Hansen

P10 (d) To fully exercise the STB Option, the Company is obliged to pay STB a further US$2.0million and issue STB Shares to the value of US$7.5 million (such value being calculated by using an issue price equal to the five (5) day volume weighted average price of the Shares in the five (5) days immediately prior to the date of issue). These Shares are to be issued in 2 tranches, with the issue of the second tranche occurring 180 days after the issue of the first tranche

(a quick calc of $7.5m at .007c = 1.1B shares)..hope the SP improves before it needs to be delivered.

If they don't exercise (will need a further $2M in cash to exercise), then have to pay $1M and extending the exercise date to 28/7/17, an option they will no doubt take as BLR with out Hansen doesn't leave much……...unless ablation was the reason your invested here in the first place.

Point (f) P12, estimates the dilutive effect of taking up this option.

P 23Schedule 5 outline the dilutive effect and shares that will be issued
Event 1 163,300,000
Event 2 141,666,667
Event 3 350,385,714

So now issued a further 655,352,381 shares for what???Is Hansen now producing??

How much more dilution will need to take effect to get the necessary permits, drilling etc to reach a productive cash in flow status.

Once again, imagine if the share price was where it should be, say circa 2c, this would not look so agreeable.

From the Independent Report

p18 Although the ablation process is not currently at a commercial scale, Mineral Ablation LLC holds the rights to utilise ablation at all mineral deposits (not just uranium deposits) globally……...However, a risk exists that the amounts Black Range has loaned to Mineral Ablation LLC may not be recoverable if the ablation process does not reach a commercial stage.

We have been advised that the Company considers the only exploration asset to have
significant value is the Hansen Project and that the value of the other exploration assets (Jonesville Project) is immaterial to the value of the Company.

So Jonesville is Nil

p 25 We consider the net asset value to be the most appropriate methodology, given that the core value of the Company is in the exploration assets it holds.

Based on the results above we consider the value of a Black Range share PRIOR to the Financing Transaction to be between $0.006 and $0.016, with a preferred value of $0.010.

---------------------------------------------------------------------------------------------
Therefore, if the Financing Transaction is approved Shareholders may become minority interest shareholders in Black Range as Azarga could hold a controlling interest, meaning that their individual holding will not be considered significant
enough to have an individual influence in the operations and value of the Company.
---------------------------------------------------------------------------------------------


P 29 As at 30 April 2014, the Company had approximately $0.10 million cash ($100,000). The Financing Transaction in total will provide the Company with a total of $5.50 million and as at 30 April 2014 the Company had drawn down approximately $3.85 million, leaving $1.65 million remaining to be drawn down.

So how does BLR pay for the Hansen option…will have to extend and issue more shares as it doesn't have the money and SP so low would result in massive dilution. (IMO)

What are the options???? Vote NO and this is the result.

If the Financing Transaction is not approved, the Company will be required to source additional funds in
order to repay the Convertible Loan Facilities. It is likely that the Company will be in the following financial position:
- Cash on hand as at 30 April 2014 of approximately $0.10 million with both CL1 Facility and CL2 Facility fully drawn down and $1.65 million remaining to be drawn down on the CL3 Facility;
- Borrowings of approximately $3.79 million of which $3.33 million relates to the CL1 Facility and CL2 Facility;
- Current market capitalisation of $12.16 million (based on the closing share price on 19 May 2014).

++++++++++++++++++++++++++++++++++++++++++++
In the financial statements for the half-year ended 31 December 2013 the auditors of Black Range included an emphasis of matter in their audit report, drawing attention to the significant uncertainty as to whether Black Range will be able to continue as a going concern.
++++++++++++++++++++++++++++++++++++++++++++



So vote No and your future prospects diminish even further?


Independent valuation report

P 33 In addition to state requirements, federal requirements must also be met. Primarily, all typical mining-related permits related to air, water, and land must be obtained as well as nuclear material permits and licenses. Herein, we will ignore the exhaustive list of permits required and focus upon the primary issues….Obtaining the licenses and permits to mine from the state is an arduous, yet achievable task, in the opinion of JKE.
Some interesting info and JKE seem to support that the project could get there..

As I have always said it will take time and money.


P40 The Project is in an early development stage, wherein sufficient
exploration has been conducted to estimate a mineral resource, as well as to allow evaluation of the conceptual economics of the Project. The existing mineral resource was prepared in accordance with Australian Joint Ore Reserves Committee (JORC) guidelines. The valuation therefore is based on reliable and current information.

Only mineral resources, not reserves, are currently delineated at the Hansen-Taylor
Project. A mineral resource, by definition, has not had economic parameters applied to it in the same regimented way done for an ore reserve. Therefore there is a lack of
reasonable grounds to satisfy the regulatory requirements to determine an estimate of
the value of the Hansen-Taylor Project using the Income Method


P46 As such we estimate an average valuation for the Hansen-Taylor Project of US$13.1M with a range of acceptable valuations, based on the sensitivity of the two methodologies, from US$6.5M to US$22.6M.

So with Hansen worth $ 13.1M and potential shares on issue with a yes vote being 2,391,783,932 give a sp of 0.005c……..(Jonesville worth nil and how much is ablation worth right now)?