Birimian Limited (ASX:BGS) A$0.33, mkt cap A$62.5m – ‘Super Ninja’ moves to take control of Birimian for ‘massive’ potential
An alliance of 10 shareholders has put together a 6.6% stockholding in Birimian Limited to lodge a petition to remove chairman Winton Willesee.
The move follows the termination of an offer by Shandong Mingrui Group which has offered A$107.5m for the company but failed to meet a deadline to pay a A$10.7m deposit due on Friday 20th.
We are aware that Chinese companies are experiencing great difficulty in transmitting funds through official routes out of China as the authorities move to stem the flow of funds out of the country.
The rebel shareholders are reported in The West Australian, to be keen for Kevin Joyce, Birimian’s managing director to stay on.
The move may have been orchestrated by the Walcot Capital, venture capital fund run by James McKay who is nominated as a non-exec director and which is proposing a former CIO Michael Langford to also be a new non-exec director.
Michael Langford goes by the handle ‘Super Ninja’ on social media according to the paper which goes on to say that Langford believes “Birimian had “massive” potential, but needed a “clear and well articulated strategy that addresses key project risks and provides the market with confidence that BGS will achieve production”.
He said his strategy as a director would be to find a partner for Bougouni with a “group that has proven successful operations and experience in Africa and direct lithium mining and processing experience”, then partner with a world class logistics provider for infrastructure.
The third pillar of the new board’s strategy would be to find “large internationally known battery and electric vehicle companies” to provide underlying long-term off-take contracts, he said. Birimian shares closed even at 34¢ yesterday.”
Birimian’s Goulamina project has one of the world’s known highest grade lithium resources grading 1.48% Li2O for 15.5mt to contain 229,000t Li2O.
Three drill rigs are currently active on site which are due to complete the second phase of a 10,000m drill program.
Initial assay results are expected this month with next phase metallurgical test work due in February.
The company plans to update its resource estimate in Q1 with PFS and maiden reserve reporting due in Q2.
The Goulamina resource ranks as the fifth highest on our list of known hard rock lithium resources and is currently at no.15 in terms of resource size though it looks like it will become a larger project.
BGS Price at posting:
30.5¢ Sentiment: Hold Disclosure: Held
(20min delay)