Definitely disappointing at the moment considering where we were heading 18 months ago. Although the buy in and subsequent liquidation by Forise is frowned upon by most we need the funds to continue the drilling cycle. The consolidation and small parcel buy back left us with only around 450 SH with sell-able parcels and few of them willing to invest anymore money meaning there are a lot of holders sitting on the fence waiting for something to happen so they can make their fortunes or recover their investments and move on. However drilling and licenses and leases all cost money so there is only the few of us who are willing to put in that have been maintaining the financial running of the company. We basically need around AUD$1M for a decent round of drilling at Bugulo to test the next round of sites and asters which we cannot raise from the current SH. Anglo has now dropped star mountain and is waiting on approval of their Hela province ELA which surrounds Bugulo. I dont think it is a coincidence that they have picked this location and believe they have been following Bugulo's progress and would be well acquainted with the terrain and geology. I still think we will be hearing from them once there application has been approved IMO.
It seems we also still have majors interested in Muller and the location of Aster sites of geological interest and evaluation of these skarns was probably a request from them to confirm the high probability of areas of interest for exploration. We will need to wait for these outcomes which is the first round of ground work this year which should be underway shortly.
On top of this we are still awaiting the outcome of the Tolukuma ELA and Sinivit ELA's. The ministry is working exceptionally slow I have noticed. Sinivit is on hold due to litigation against the previously lease holders. once that is resolved we will see if Munga river is approved or whether it is reverted back to frontier. The positive here is that we will have the funds to kick it of and wont need to run another CR as we were doing last time.
The drama's with Asidokona Mining Resources limited and the liquidation of the Tolukuma mine is still ongoing but according to this report will not effect their mining license but as I previously mentioned has opened the door to someone else to pay their depts in exchange for the lease. (https://ramumine.wordpress.com/tag/tolukuma-mine/) I'm hoping one of the majors jumps on board here and fires up the mine again. This will have several positives from what I can see. One is that they will be open to new mineral deposits in the area to increase their profits and may also see Asidokona Mining Resources limited drop their ELA2534 as they are second up for the same area we have applied for.
Finally we have to wonder why Forise want to buy in. If they wanted a shell company they could have bought out other companies far cheaper. If they are genuinely interested in our exploration and have gone over Peters geological reports then we may finally have a huge line of credit open to us to develop Bugulo. (just speculation). Either way they are buying in at 1.6 (higher than current level) with options at 2.9 (which they will want to exercise) which will double our current level. We have seen a positive assay from Bugula take us from 1.5 to 5c so there is absolutely no reason why we shouldnt be back to the 10c mark at some stage should any of the above come to fruition. I am sure that Peter and the board have a valid game plan here and we just have to wait and see how it plays out. Also remember Peters 20M shared will be in escro and he wont be able to sell them and as he has invested over AUD$1M of he's own money he wont want to sell for less than what he has invested. He will be looking for a decent return on this in my opinion.
In any account good luck to all of us that have been here for the long hall and lets see what is on the cards here.
cheers
GD
(remember to do your own research)
FNT Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
