I note that the North River website website has been updated and there is no mention of Namibian authorities having a direct stake but hold 10% of the subsidiary which in effect means we own 90% of the project
I agree with Cruncher1 that we most likely will be bought out once production commences as US investors like Castlelake would like a return on their money in the shortest time possible. If we get a good offer benefiting all shareholders will be fine by me
I would be surprised if we ever get any dividend paid out as I think its far more likely that the company/mine will be sold in a year or so (maybe a few months either side of when the construction work is finished).
The two majority shareholders will undoubtedly have an exit strategy and I doubt that their primary intent involves hanging around until the mine's resources are fully depleted ... but I could be wrong.
I also received the update and all good news especially full production by March 2019.
I am quite happy for the Namibian government to have a stake as will keep all parties with an incentive. As I read it they do not have 10 per cent in North River resources but in the subsidiary Namib Lead and Zinc Mining (Pty) Limited which is a 100 % subsidiary so 12% of North River is still owned by the directors and private shareholders
I am still fully invested here and am struggling to fully understand the full implications to my investment of ongoing developments. I understand that Greenstone and the new investor each have a 44.11% holding. (88.22%) that Local Namibians have been given a 10% shareholding as a requisite to approval of mining licence. That equals 98.22%. Leaving 1.78% to other shareholders. Have I misunderstood this sum? From whom was the 10% local shareholding taken? Is it reasonable to assume that once in production Q2 2019 we may reasonably expect to receive dividends? Any information from more technically minded and adept brains much appreciated.
I have just noticed on Friday the company has appointed 2 new American directors who are both high profile directors of Castlelake LP in particular Brent de Jong. It is of great significance that Castlelake a multi billion company are investing in our company as there must be hoards of listed mineral companies that would be desperate for their financial backing. I am sure they must have done due diligence on North River and must see very large potential to invest in a small unlisted company so exciting times ahead
Yes I saw that too. Having held against my better judgement when they delisted, I now looks as though i made the right call. Ive got a massive way to go before I break even but this is a good start. With miners in favour at the moment and high Zn prices I can see this going further. Why they may even re-list!
I have noted yesterday on Companies House website for the company confirmation of all resolutions and allotment of additional shares. With the license granted and funding in place it would appear for the first time in years production is on the horizon.
With substantial investors behind the company could be very exciting and profitable times ahead
I am no longer a holder but some kind souls have kept in touch with me and more recently made me aware of the placing.
I often wonder what would have happened with the development of Namib had Martin French stayed on and remained ceo. He may have obtained the mining permit earlier than has been achieved and if so, the mine might have been built earlier; indeed the Chinese shareholder may have assisted with the finance needed to build the mine.
If so the mine might have been in production in H2 2017 or this half H1 2018 and have ridden the increase in zinc prices as well. Good for the cornerstone investor, Greenstone and good for the private investors.
All hypothetical, I know, but I wish all you PIs who have remained invested good fortune.
As a long standing shareholder I was delighted with the fund raising proposal at 20 pence a share valuing the company at ten million. Greenstone and CL Ventures expect to make a return on their investment and would anticipate the company having a higher value when mining commences with production
I notice on the matched bargain company Assetmatch there is now a cheeky order to buy at 3.5 pence which would be a bargain if anybody is foolish enough to sell at that price. I have voted in favour of the resolution and am not bothered by being unlisted as presumably in the future there will be a plan to release the value to the shareholders
Well, it comes around again doesnt it? I wonder if Greenstone keeps an eye on this board? March 6th I believe the vote is. All that time waiting until the price of Zinc got in to the range where it was profitable to extract the reserves out of Namib.
Who knows what letters and emails are being sent out - I wonder if the various entities
have spoken? Does China know? Have they sold their shares to someone else?
I wonder if the Namibian partner has been lined up?
Its a good thing, Zinc Oxide is needed in electronics - if this had been delivered in a different way, this company could have shared the revenue between private and institutional holders.
I hope that something will come to stalwart PIs who supported this project when it was on its knees - I admire the dedication and loyalty shown.
As to others, I will allow the Wikipedia description to stand.
A Pyrrhic victory is a victory that inflicts such a devastating toll on the victor that it is tantamount to defeat. Someone who wins a Pyrrhic victory has been victorious in some way, though the heavy toll negates a true sense of achievement or profit.
Proposal now on NR & Asset Match websites.
Says Greenstone will vote in favour which makes voting by the rest of us seem rather irrelevant. Also Greenstone & CL ventured to provide loans totalling $14.7m @ 15% per annum.
In the circumstances Im in favour of this & remain pleased with CLs proposed 20p a share entry point.
from the prospectus NRRP intend to issue 24,010,037 subscription shares to CL Ventures at a price of $0.2817 per share to raise around $6.76m to fund development of Namib. They also propose to convert the Greenstone convertible loan into 4,034,537 new greenstone shares. Both need shareholder approval hence vote.
My reading of the prospectus suggests there is no value in voting against as this appears to be the only option available to develop Namib. The alternative is administration.
In time there may be some value accruing to smaller private shareholders but nowhere near the value that most have invested here.
Mine also held in nominee account. I have received brief notification of meeting from my stockbroker and proxy form to vote, although no details of resolutions, or proposed share issue. From the proxy it looks like they want approval to issue shares free of pre-emption rights, so I would guess shares only for the "chosen ones"........
Clearly the company needs to raise some funds either though debt or equity if it is to get the mine into production, but it surely it would only be fair to give all shareholders the opportunity to participate if they choose to? Presumably that facility has been vetoed on cost grounds.
Anybody got any further details of the proposals please?
My shares are in a nominee account and I haven't received the AGM info.
There's doesn't seem to be any info about the AGM on the NR or Asset Match website.
What are the terms of the $6m raise? is it all equity? some debt?
If equity then at what share price? presumably largely a placing? have Greenstone said they'll take some?
According to the NR website (don't know if its up-to-date) Greenstone own 75.69% of the shares, so whatever it says goes as far as the vote is concerned.
Have you received the AGM invite? NRRP intend to raise around $6m to fund development of Namib. They need shareholder approval though for the new shares - hence the vote. As expected they ( Greenstone) think its a great deal for shareholders - not surprising as they own most of the share base anyway.
Oh and if they dont get shareholder approval for the issue of 28m new shares they threaten receivership - as they have done in the past.
My shares are now almost worthless now and will become less than worthless after this massive dilution.
Yes i too have a large holding with average price well above indicated value when AIM listing was cancelled. The economics of the project were never in doubt for those who did the math which is why I didn't sell up at rock bottom earlier in year. - hopefully with much improved Zn price and more certainty over relationship with Namibians we will now see some value coming through. Here's hoping!
update just out which can be seen on assetmatch website
Looking very good with construction to commence in early 2018 to last less than 1 year and payback within 1.5 years and a NPV of US $34.9 with a mine length of 8 years
I have a large holding in this over the years and the value now could be substantial so a lot to look forward to
With Zn price at a high I'm surprised we've not heard anything re progress now that licence has been awarded. Earlier studies confirmed the viability of the NLZM at much lower Zn price but funding or sale do not appear to be on the cards. Any1 heard anything?
They advised us about the receipt of the mining licence in early June.
The release also stated:
"New metallurgical testwork is planned for mid-2017 on fresh, recently drilled core samples from the North region. This work is seen as confirmatory testing for the processing of North orebody material only. Additional testwork will be conducted on old tailings dump material in order to evaluate the appropriateness, and optimisation of, a process flowsheet separate from the fresh ore stream.
Following the grant of the Mining Licence, the Company will now fast-track the update of, and optimised project profile for, a final construction decision, incorporating improved understanding of the orebody gained from all exploration drilling, metallurgical testwork and related process design work, carried out since the DFS was completed. "
Can we presume that the metallurgical testing is, or has, happening? (we're now almost a month past "mid-2017").
What's the timetable for the "fast-track" of the final construction decision?
How often will shareholders be updated?
Can't help thinking that a possible outcome will be an eventual sale to a Chinese company.
9 June 2017
North River Resources plc (North River or the Company) is very pleased to advise that Namib Lead and Zinc Mining (NLZM), its wholly owned Namibian subsidiary, has been issued with a Mining Licence for its Namib Lead & Zinc Mine (Namib Project) from the Ministry of Mines and Energy.
The mining licence application for the Namib Project was filed in April 2014 and the Company has since then been actively engaged with the Ministry. On 28 January 2016 the Company received from the Ministry a Notice of Preparedness to Grant the mining licence (Notice) for the Namib Project.
The Notice contained a number of supplementary terms and conditions relating to matters
including, inter alia, the work programme, production, environment and Namibian participation in the Project that will apply to the mining licence (the Supplementary Conditions).
North River sought clarification from the Ministry on certain aspects of the Supplementary
Conditions and its interpretation of them, and pending this clarification, accepted the Notice on 26 February 2016. In accordance with the process set out in the Notice, the Company then submitted a proposal to the Ministry on 25 April 2016, covering local ownership of the Namib Project, participation by historically disadvantaged Namibians in management of the Namib Project, and the Companys corporate social responsibility strategy.
In November 2016, the Ministry indicated that the Companys proposal to set up two Trusts, the
Namib Lead & Zinc Mine Community Empowerment Trust and The NLZM Employee Benefit Trust would meet the Ministrys requirement for Namibian participation. On 29 May 2017, the Ministry issued a 10-year mining licence, effective from 25 February 2016.
Namib Project development and optimisation
Following completion of the DFS in November 2014, a number of areas were identified where
additional technical evaluation work was required to define a mine plan and processing plant design to a level of confidence to support a project investment decision.
New metallurgical testwork is planned for mid-2017 on fresh, recently drilled core samples from the North region. This work is seen as confirmatory testing for the processing of North orebody material only. Additional testwork will be conducted on old tailings dump material in order to evaluate the appropriateness, and optimisation of, a process flowsheet separate from the fresh ore stream.
Following the grant of the Mining Licence, the Company will now fast-track the update of, and
optimised project profile for, a final construction decision, incorporating improved understanding of Corporate Update of Activities & Issue of Mining Licence for the Namib Project
the orebody gained from all exploration drilling, metallurgical testwork and related process design work, carried out since the DFS was completed.
The final investment decision to develop the Namib Project will depend on favourable project
economics and the availability of finance for the up-front capital required for construction.
Over the past year, the Company has drawn Shareholders' attention to the efforts of the Company to identify cost saving opportunities. In line with this need, the London corporate office was closed and all other corporate costs reduced or eliminated. In Namibia, following completion of the drilling programme in late 2016, activity on the Project and at site was cut right back pending clarity on the development timeline for the Project.
North River furthermore announced on 17 March 2017 that the resolution to cancel the admission to trading on AIM of the Ordinary Shares was passed by shareholders, and was made effective on 27 March 2017.
Following the cancellation of the AIM listing, the Company appointed Asset Match to facilitate
trading in the Ordinary Shares. Asset Match is a firm authorised and regulated by the Financial
Conduct Authority and operates an ele
North River Resources has announced that its wholly owned subsidiary, Namib Lead and Zinc Mining, has been issued with a Mining Licence for its Namib Lead & Zinc Mine from the Ministry of Mines and Energy.
Interesting and presumably why NRRP are having difficulty agreeing the licence terms for the NLZM. In the long term this will only disadvantage Namibians. While the Namibian governemnt may be able to shoehorn this requirement into existing projects their unlikely to attract new investment. Globally mining is only just emerging from the botton of the cycle and many predict that it will revisit the bottom (excluding uranium and lithium) before too long. I really cant see new investors wanting to commit to solving poverty in Namibia with shareholders money when so many other counties ( e.g spain and BKY) are offering real incentives to businesses wanting to set up in depressed communities. I had big hopes for NRRP but, as is so often the case in mining, greedy govenments can often destroy an otherwise sound investment
Obeth Kandjoze, Minister of Mines and Energy, comment this week:
We have also implemented additional conditions on mineral licenses to reserve a minimum of five percent participation in all licenses to Namibians and 20 percent of historically disadvantaged Namibians must form part of the management structure of the license holder.
The applicant must also submit an explicit programme on how it will contribute to poverty eradication, particularly in the context of empowering the poorest of the poor, the youth and women,
In the first instance, I would suggest registering www.assetmatch.com and adding North River Resources to your 'watchlist'. Here you will have access to dedicated company page which contains a raft of information including auction instructions, how to participate, price history and a live order-book of buyers and sellers.
NRRP will also be posting shareholder updates here too and we will ensure that you are kept up to date.
If there is anything that you need help with then please do not hesitate to get in contact on Tel: 020 7248 2788 or alternatively Email: [email protected]
FLU I really did not know what the process was for this, it is the first time I have experienced a share de-listing totally.
I contacted my broker and they advised that I can get a share certificate for an admin fee of £25.
Saavedra, is there a reason why you cannot get the certificate? If you have lost it you can get a new one by applying to the registrar ( the company secretary will tell you who that is)
- unless another holder has a cert?
Lost certificates can be re issued by means of an indemnity form.
If your shares are held in a nominee account instruct your holder as to your wishes, they are still
Tradeable until 27/3.
There is a chance that an asset will be injected into the shell, this company holds a lot of Tax losses that Greenstone may well want to use. It could be at an unknown point in the future.
Anyone just wanting to know what is going on could hold on to 1 or more shares so you get the annual report.
One thing could be to turn up to any meeting with a certificate, a lot of effort!. It depends on how strong ones feelings are.
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