"The Nam government is likely to make the granting of new mining licences for strategic minerals conditional on granting participation (eg 5-10%) to Epangelo."
"But Extract for one appears to be relaxed about this. Any participation would be on commercial terms (ie not a 51% grab as in Zimbabwe)."
Epangelo can't just take ownership of existing projects. How can they possibly say: "you can have the exploration rights but when you find something Epangelo will own whatever you find." Investors wouldn't go for that!
I expect government earnings from existing projects will still come from the tax system which appears similar to our Labor gov's income + resource rent tax.
It sounds to me like the intention is to make Epangelo the issuer of new exploration and mining rights and they prefer to be paid for this via shares in existing and new projects rather than with cash. Eg EXT gets more exploration and mining rights - Epangelo gets shares in the project.
EXT Price at posting:
$8.04 Sentiment: Hold Disclosure: Held
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