RE:RE:RE:RE:RE:Kalamazoo KirkThe Eagle,
You may be right, but I can't read the regulator's mind on their preference in the bidding process. They are holding all the cards. Presumably,
- They want to be transparent, and any preferences must be stated upfront, so bidders could prepare themselves (sometimes they would use an Aussie company and provide enough financial backing who could spearhead their bids).
- They may prefer an Aussie company (KL is listed, and has one of best mine around), but they also want investment money coming in from outside the country. Afterall, the mine will be in Australia and they are collecting 2.5% royalty on the production...and the taxes from the income of the company and the income from the workers at the mines. All that is funded by "off-shore" money.
- It's not known what deal KL made with the regulator on the mining permit for Forsterville. A prefererred treatment in the bidding for the revised Block 4? It's a big unknown.
- They may prefer to select an explorer (like KZR, that has the backing of NVO and ES) to explore Block 4, knowing very well that it has a potential backing of KL...and Sumitomo, a giant Japanese conglomerate which is backing NVO as well, they have one member (Ishikawa) in NVO BoD, plus Akiko Levison, who could be considered as another Japanese connection.
It's a tangled web, but the auction results will be announced late Jan of Feb. Stay-tuned.
GH11
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KirkTheEagle wrote: goldhunter11 wrote: ike,
If you just look at the facts and ignore the details as an investor then your worries/confusion would go away. Since, to get to the bottom of this you would need to do some research on the rules and Fed/State regulation on mineral exploration and mining and their power to impose conditions (there are all kinds of conditions, including compliance with aboriginal requirements, but they have an established process to go through, on the license owner. As the quote says, "tenement EL 3539 was taken out of KL hands...". This is true, and becomes a fact as part of a deal with KL. Now, this tenement plus other bits get larger and surround Forsterville mining lease. This much larger tenement is now up for an auction (results will be announced late Jan or Feb). Bet that KL is in the running and already put in a bit. KZR and others are doing the same presumably. If KL were not a winner in this auction, then it would be very disappointed. But there would be a fallback position, if KZR somehow got a much better bid and became a winner...Entering QH, Uncle Eric with 8.2% each, and an option to double down at 0.80 for a total of 2 x8.2% = 16.4%.
Some more facts
- KL is a major shareholder of NVO, ES is next in line (he sits in NVO BoD); KL has an option to get more shares of NVO at $6 (They have invested at $4/s for 14Ms x 4 =$56M in NVO. Another 14Mx6 = $84M to invrease the hold in NVO is chump change for his $600M+ in Tony's petty cash box.
-Tony Makuch has high regard for QH (see his fireside chat with NM)
Speculations: NVO +ES buy-in KZR is an insurance policy, just in case AZR is a winner of the acution. Besides, AZR has some excellent drill results at Castlemaine some 45km away from Forsterville.
BTW, if you look around, there is a map that shows the location and the size of Block 4 compared to Fosterville. I don't recall the link at the moment, but this could be in one of related articles. Or it could be in KL website when they talk about Forstervile and the exploration ground around Forsterville mine. Good luck.
GH11
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ikebalinski wrote: I am confused....could someone explain why this tenement was taken out of Fosterville?
Was it just not interesting?
The exploration tenement previously known as EL3539 was taken out of Kirkland Lake’s hands in February as part of a deal that absorbed portions of the tenement into the Fosterville mining lease
I dont see KZR beating out KL or any of the majors. From what I've read Australia will award to which ever company has the most liklihood of putting it into production near term. With an advantage pehaps given to aussie companies. They want the economic benefits. Kzr/nvo dont have the clout on their own to put it into production. That doesnt rule out a deal with KL though.
Cap'n Kirk