Given very little has been heard about the Dragon and Knight nickel prospects acquired late last year,I thought I would carry out some due diligence on the acquisition.
These prospects were acquired from CleanPower Resources Pty Ltd(CPR).The prospects I understand were the only effective assets of this company.Minrex[MRR) in June 2018 following a due diligence appraisal of CPR decided not to go ahead with its acquisition.Why? No reason given. TYX 12 months later did acquire the CPR assets being the Dragon and Knight nickel prospects.TYX in its November 2019 report to the ASX stated the acquisition was made after TYX's due diligence consultant Xplore Resources Pty Ltd stated the prospects were "highly prospective and have potential to deliver exploration upside".
So our TYX directors were seemingly guided by the due diligence undertaken by Xplore Resources Pty Ltd for the benefit of TYX.
Cant argue with carrying out due diligence on such matters but what is the strength of the due diligence when
"The exploration results for the Knight and Dragon projects contained in this announcement are based on and fairly represents information and supporting documentation prepared by Nicholas Ryan, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Nicholas Ryan is an employee of Xplore Resources Pty Ltd. Mr Ryan has been a Member of the Australian Institute of Mining and Metallurgy for 14 years and is a Chartered Professional (Geology). Mr Ryan is employed by Xplore Resources Pty Ltd. Mr Ryan is the consulting Technical Manager for Clean Power Resources Pty Ltd."
The above is extracted from TYX's November 2019 report to the ASX, final paragraph.
So the board of TYX asked the Vendor's [CPR} consultants to undertake the due diligence for TYX.
When researching Xplore Resources it does not hold itself out as providing due diligence services and its expertise is not mentioned with respect to nickel but rather more for coal.
Bring back Pierpont
TYX Price at posting:
0.4¢ Sentiment: Sell Disclosure: Held
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