Investments
Minemakers has strategic investments in the following companies:
- Australasia Minerals and Mining Group Ltd
- BCD Resources NL
- JDCPhosphate Inc (6.67%)
- Namibian Marine Phosphate Pty Ltd (direct 42.5% and a further indirect 5.6%)
- TNT Mines Limited (approx 20%)
- Union Resources Limited (13.1%)
JDCPhosphate Inc
Minemakers owns 6.67% of JDCPhosphate Inc (JDC) which has a patented technique to produce superphosphoric acid (SPA) by a dry kiln technique. It intends to construct a demonstration scale plant, subject to securing appropriate financing, in Florida during 2012. JDC aims to prove the viability of the process at commercial scale. Minemakers will test the Wonarah ore through it and if results are as anticipated, installation of kilns to produce that SPA at Wonarah is the likely downstream development route. Pilot scale test work was carried out in 2011 in the USA with appropriately encouraging results.
Sandpiper phosphate has also been satisfactorily tested at laboratory scale. A Stage II development of Sandpiper to produce SPA looks to have particularly robust potential economics and will be keenly pursued if the commercial scale applicability of the dry kiln method is proven.
BCD Resources NL
In late 2010, Minemakers invested, via a loan of $8.5M, in the listed Tasmanian gold producer, BCD Resources NL. That loan was later changed to a convertible note, maturing in February 2012 and attracting a 20% coupon.
The investment was made to enable Minemakers to gain exposure to the strongly performing gold sector, to enable it to gain control of BCD if it so wished, and as a way to gain value for shareholders through the possibility of vending its Tasmanian tin, tungsten and fluorspar projects into BCD.
However BCD has under-performed and Minemakers determined that it would recover the loan plus interest. Repayments began from 2Q 11 and all moneys will be returned by February 2012.
Australasia...
Minemakers has vended its West Southdown magnetite project to AMMG. The consideration is 5 million fully paid shares and 2 million 20 cent options. They will be issued to Minemakers on renewal of EL70/2640 which is 80% owned by Minemakers.
The decision to sell the project was made in the light of the Company's focus on development of its Australian and Namibian phosphate projects.