I attended the general meeting last week, as I hold oppies only,...

I attended the general meeting last week, as I hold oppies only, I was not allowed to participate in the meeting, but went along to have a quick chat to management (Jeremy and Bill mainly). Both appeared very excited about the prospects, are very keen to make rapid progress, are very much up do date on the project, its possible directions and the vanadium market/opportunities that may exist for TNO.

The meeting itself was very standard, not many in attendance.


A few questions/things discussed by me (from memory) prior to the meeting with Jeremy and Bill -

How long away until due diligence is completed? Is it going well?
The due diligence wasn't too far off (around a couple of weeks I think was said), all was going well with it. The holdup was a few minor legal issues not on TNO's side, I was told it was simply a matter of working through some processes and ticking off the remaining boxes, they didn't appear concerned at all which was reassuring.

When is drilling likely to commence?
Bill was very eager to get back on site. Drilling/exploration permits have been applied for and they are simply waiting for them to get approved, I think he said there was a bit of a hold up on permits as there is plenty of exploration activity going on in general. Which I feel bodes well for explorers and developers in South Africa. He expected these to be done in a couple of weeks, not too long.

What is the existing infrastructure and the opportunities here, eg the mine nearby that has run out of ore?
The infrastructure in the area from existing mines is clearly going to be a massive advantage should this resource be developed. There are existing mines in the area so it is clear that this infrastructure is adequate and has been invested in by/for current miners which I feel is a great sign as this is one less thing to worry much about moving forward. I asked about the existing mine, and they are aware of it. If the pipe grades are proved and they find enough material in them, they think there is the possibility of being able to DSO ore which would be a great way to provide quicker cashflow for minimal capex.

I asked about the risks of South Africa and to be fair it hasn't had the best reputation of late. Bill did comment that it was a little different to Australia and it came with some differences and risks (he stressed he didn't feel these were significant to the company moving forward). I feel very comfortable as he was willing to admit that some existed and has plans/ways to minimise them. But he did say that the systems in place for miners/developers/explorers are very similar to Australia. It is a matter of following the set procedures and ticking off the boxes. Whilst it hasn't been the best in the past, it has and is still being improved. Being aware of the system and following it may sound silly, but it's an effective way to manage this and it is clear they are all over it as best as they can.

I feel that the ownership structure will help reduce these risks also and could probably lead to to faster progress when dealing with governments/authorities. This is due to the 26% stake in the project maintained by Steelpoort Development Trust (in trust for the communities of Ga-Malekane and Ga-Masha, and Broad Based Black Economic Empowerment (BBBEE) entities Obeec (Pty) Ltd and the Math-pin Trust), plus the Owners of Steelpoortvan Pty Ltd (the 74% of the project we are acquiring) gain further exposure to Tando as the resource is further developed. So it would be in the governments interests to speed things along for all and it will undoubtedly help having local knowledge and experience assisting with the government/relevant authorities.