AUZ 0.00% 0.8¢ australian mines limited

At this point folks, I strongly believe we can deduce from the...

  1. 12,830 Posts.
    lightbulb Created with Sketch. 15644
    At this point folks, I strongly believe we can deduce from the following information available from recent announcements that the next 2 weeks may potentially present some sort of deal to advance more of AUZ's portfolio of Cobalt , Nickel and Scandium tenements.

    Firstly it would be my reasoning's that the delay's in the BFS are not so much about the alleged 'desperate scramble ' as many are eluding to - as it is about the highly confidential nature of certain aspects of some possible preemptive deals to be announced ahead of it.

    So as we should all be aware of the announcement of 27th Aug when AUZ announced the proposed Acquisition of 100% interest in the Flemington Cobalt-Nickel project from JRV . In this Announcement , they also stated that '' Completion of the Sale Agreement will occur over the next 20 business days at which time Australian Mines will make the final payment of $3,400,000 to Jervois Mining Limited ". So 20 business days would have made it either Friday 21st September or Monday 24th September.

    However , the fact they did not include this $3,400,000 remaining payment into their estimated cash outflows from their 4th QTR activities statement , infers to me that they knew settlement was tied to other potential deals and so it will now be announced sometime between now and the end of October as per these points which were clarified in the Jervois letter of the same date of 27th August 2018.

    " In late 2016, prior management of Jervois optioned the Flemington project (exploration licenses EL 7805 and EL 8546) to Flemington Mining Operations Pty Ltd, a wholly owned subsidiary of Australian Mines, for A$6.0 million in cash, of which A$2.0 million in rolling option payments has already been received by Jervois. This notification received by Jervois from Australian Mines triggers the final Option Exercise Fee of A$0.6 million plus GST, which is payable immediately. The remainder of the purchase price, being A$3.4 million plus GST, is payable upon completion. Completion is anticipated to occur in mid October 2018. "

    " Now that the Flemington option has been exercised by Australian Mines, Jervois’s 1.5% gross royalty on all mineral products has been created. This royalty was part of the royalty package sold to Cobalt 27 Capital Corp. (“Cobalt 27” in late June 2018 for US$4.5 million, comprised of US$1.5 million in cash and US$3.0 million in common shares of Cobalt 27, represented by 422,856 Cobalt 27 common shares based on the 5 day VWAP preceding execution of the definitive agreement. Consequently, closing of the Cobalt 27 royalty sale is now also expected to occur before the end of Q4 2018. "

    As per my last post in regards the Vale ' streaming deal'. I find it additionally interesting that this deal coincides with the deal between Cobalt 27 and Jervois regarding Flemington. - especially when one re-considers the statements made by Wheaton at the time of the Vale deal.

    " At the time of the Vale announcement , it was mentioned that Wheaton still had a lot of firepower for additional streaming transactions and expects to announce a precious metals deal of between $300 million and $500 million in the next few months, he said. "

    “We’re pretty excited about the deal” and “We know there was more than us in the space but it got narrowed down to the two of us pretty quick.”


    As far as I know folks , Cobal 27 has not made any substantial announcement in the order of 300 - 500 million as yet or since the June deal with Vale was done ; AND therefore this is how I deduce an imminent trading halt and announcement of a possible further deal in regards the Flemington tenements...... Have a great Trading Day Folks.
 
watchlist Created with Sketch. Add AUZ (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.