Post by
BNPResources on Jul 29, 2017 9:24pm
BNP - July 2017 - Letter to Shareholders
RE: July 2017 - Letter to Shareholders Dear Shareholders: The purpose of this monthly letter is to bring BNP shareholders up to date, on issues and news, since the last letter. 1. The following is a summary of activities over the past month: (a) Just received an update from our agent, this past Thursday evening. He has advised us, that his primary debt financing agent, had some delays, with their main capital provider. Rather than waiting until these issues are resolved, we are now working with another group of companies on a Phase 1 / Phase 2 financing program. This involves an initial debt financing of $20 million in Canadian funds, followed by a $100 million Canadian debt financing. As business plans, resumes, financial projections and application details have already been prepared and submitted, we expect the next phase to move forward, more quickly, over the next few months. We will keep shareholders posted on our progress. (b) Our board of directors met, during the month of July, for a business development meeting. We reviewed our current progress, as well as future business development opportunities, outside of the oil and gas industry. Weve looked at industries such as hotel / hospitality, entertainment / sports, consolidation of car dealerships, McDonalds Restaurant franchises, trucking, and the garbage / sludge business, among others. At this period of time, most of the opportunities are outside of the Province of Alberta, with many in the USA, Northwest Territories, Ontario and Quebec. The business climate in both Alberta and BC, is now considered negative, by the business community, resulting in the cancellation of LNG projects in BC. A second business, outside of the oil and gas industry has been identified, that holds potential, to allow us to raise equity for the company, within 9-12 months of receiving the initial debt financing. As always, this is subject to our ability to negotiate economic pricing, obtain legal and regulatory approvals, and negotiate tax credits where applicable. (c) Oil prices are holding steady in the $49.79 US range for WTI crude. Gasoline prices are also rising. We enjoyed low gasoline prices for just a short time this summer. (d) As of last month, our agent had $2.1 Billion in projects. Based on recent discussions, he now has a backlog of $50 - $60 Billion of projects around the world, for which he is seeking financing. He has a large depth of contacts and we are working closely with him to put together our financing package. He appears to be in the top 10% of independent agents, involved in finding financing packages for clients, within Canada and the USA. Very impressed so far with his depth of contacts, and backlog. (e) Recent news regarding Jimmy Pattison of Vancouver His group of companies recently purchased a number of radio stations and John Deere dealerships in Saskatchewan. (f) I had discussions with our pipeline/power generation/ transmission partner in Calgary this afternoon. He continues to look at analyzing tie in opportunities for our pipeline and power generation project in Northern Canada. We are very focused on the next three stages of development: (a) Raise $20 million debt financing, followed by an additional $100 million, debt financing, (b) Complete year end financials for 2013-2016, and reinstate trading of BNP shares at $0.10 - $0.25 cents, and (c) Kick start the raising of equity, with a catalyst transaction (to be advised at next AGM), offered at $0.25 - $1.00 per share. Note to shareholders: These are my current target prices based on initial management projections. Actual valuations will be determined by market conditions, and shareholder demand for the catalyst transaction. There is no guarantee that (a) shares will trade within this range, (b) no guarantee that we will be able to acquire the target business, at the target valuation price, with the required approvals, (c) no guarantee that a broker will raise equity for us, and (d) no guarantee that we can obtain exchange approval for the transaction. I was asked by one of our shareholders about when we would be issuing formal news releases again. Formal news releases will follow after the raising of the first stage of financing. Our currently annual budget is just $1800.00 for the storage locker, and $200 for annual corporate filing fees, for a total of $2,000 annually. At this stage, we do not have funding for news releases, which cost $350 - $750 each, depending on the number of words.