Ann: New Funding to Support Otjzondu Development, page-10

ok, so let’s look at the positives:

new funding = “provide working capital to enable Shaw River to rapidly progress the development of the Otjozondu Project and bring it into production as quickly as possible.”

Otjo became SRR’s focus and they always talked up near term production, but have never quite got there, in fact, they seem to have lost their way in a big way.

as a result, investors lost confidence and SRR’s share price has dropped into the abyss over the last year or two. It has also struggled with lack of funding to ramp-up progress at Otjo.

this development could well give SRR a fresh injection of enthusiasm and a new s/holder which wants to fast-track the Otjo project to production.

new funding = no CR in the foreseeable future.

AGO wants out. It’s loan facility is still repayable, but the interest rate will be reduced from 11 to 6% and the facility is repayable in 5 years. This is manageable. thank you, AGO.

the new managing director’s performance rights are dependant on progressing Otjo as quickly as possible, ie “10 million performance rights which convert to ordinary shares upon First Commercial Ore Shipment from Otjozondu”

further, “Mr Cunningham will be retiring from current directorships to focus on the development of Shaw River and Otjozondu.”

the big question will be whether this new blood can steer SRR to where it should have been in 2013 … producing?! ahhh, the million dollar question. I would hope to read a statement from our new managing director in the near future about how he intends to turn SRR’s fortunes around.

SRR has a market cap of about $7.23m at .008c.

it’s current known resource at Otjo (see below) alone would suggest a higher market cap is warranted.

“Shaw River has successfully outlined an “at surface” manganese bulk sample of up to 265,000 tonnes from up to 8 areas with some zones >36% Manganese.” (excerpt from 31 july 2014 announcement)

SRR has a “Mineral Resource estimate totalling 17Mt at 22.5% Manganese” (excerpt from 11 december 2012 announcement)

“The Otjo Project possesses a number of very favourable characteristics, including:
* Located in Namibia, a mining friendly and low sovereign risk jurisdiction.
* Excellent proximity to existing public user road, rail and port infrastructure.
* Granted mining lease with environmental approvals in place.
* Potential for simple open pit mining due to outcropping resource tonnes. Processing plant consisting of crushing, screening and beneficiation equipment is owned by Otjozondu Mining, currently on care and maintenance.
* A resource tonnage defined in relation to global peers which could underpin a significant mining operation.
* A large tenement holding covering 90% of the known Otjozondu manganese field and,
* Considerable exploration potential with only 13% of the known strike of the mineralised horizon tested to date.” (excerpt from 11 december 2012 announcment)

the potential is there, the resource is there, we have known that for some time now, but the strategy in getting to production has not yet worked.

we will have to wait for mr market to tell us what it thinks of this new funding move by SRR.