Thanks KOKOThe disclosure made last year was that:"...the...

Thanks KOKO

The disclosure made last year was that:

"...the Company is required to convert two of its five exploration licences at the KM Copper Project into mining licences by 26 April 2013. Should the two licences not be converted by that date, the licences will lapse."

From the information you kindly provided:

"Similar to an exploration licence application, the applicant for a mining licence must submit the approved form and associated documentation, as prescribed in Article 25 of the Mineral Law and attached in the Appendix, to the Government agency. Upon receiving the application, the Government agency will have 20 business days to refuse or grant the licence.

If the licence is granted, the applicant then has 10 working days in which to pay the first year’s licence fee.

The mining licence is then issued within 3 working days
following the first year payment."

I interpret that as follows:

- the application does not represent the conversion;
- the grant of the license is just the invitation to convert the exploration license into a mining license;
- the payment of the fee actually represents the act of converting the exploration license into a mining license.

From my interpretation of what you have provided, until you pay the fee the exploration license will not be converted into a mining license. That it is the act of making the payment that triggers the conversion but not the granting of the mining license by the Ministry of Mineral Resources and Energy.

I guess I can't be correct considering management would have had to have made an announcement to the market on 12 April (ie 10 working days ago subject to Mongolian holidays) that the license had been granted considering it is market sensitive information.

If this is not completed (either the issue or the payment which ever it is) by 26 April then based on the following:

"...In circumstances where the exploration licence has expired and the holder has failed to apply for a mining licence, the mining licence is granted by way of a tender."

I interpret this to be that Voyager could still, conceivably, retain control of the site but not be able to undertake exploration activities until they have converted the license. At that point they would have to compete publicly, which sounds similar to the Indonesian process, which runs the risk of:

- having to pay an amount of the mining license fee plus whatever it takes to secure the tenement;
- provide a commercialisation plan for the project;
- show that Voyager has the funding and the skills to be able to complete commercialisation.

depending on who may also participate in the tender process. This is highly risky considering the resource that has been delineated to date and the risk of loss of the tenement to another party.