For the past month I have been in negotiation with The Spokesperson of one of the tribes that resides at Garatau. I was asked whether our Group was receptive in selling our NKP shares to the Community. I said YES and gave them options on quantity and price. I referred their enquiry to our Group spokemen for consideration.
I understood that by buying our shares they would have leverage over Zijin and the development of the mining project. I got the impression that they would go to the South African Takeovers Commission and ensure ( no idea how) that their holding would not be taken over. You may recall that this Tribe was able to frustrate the issuing of the Mining Licence for two years until their conditions were met. Maredi had allocated only 5% of Genorah Resources to the Communities. They had requested 10% but failed to have this allocation increased. Buying NKP would provide them with more influence.
Throughout the year I have kept them informed with all aspects of the Amalgamation, ASX announcements, our Valuation Report and provided them with press articles. My objective was to ensure transparency and good faith.
A fortnight ago the King and Community Representatives met with their Funder/Investors to consider the purchase. This week I indicated that time was running out and that the sale had to be completed by today. Up until yesterday they were still waiting for feedback from their funder. Such a prolong delay in confirming their intention to guarantee funds and advance documents leads me to believe that they do not have the financial support.
It would have been great to see Zijin once again be subjected to the power of the locals.
I tried my best but report that even this last minute effort to increase the 10c takeover price and scuttle the Amalgamation has failed.
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