Email Updates to Investors
Dear BEST Minerals Shareholders,
On behalf of the Board of Best Minerals, welcome to our latest email update.
Since our last update, like everyone else, we have faced one of the most difficult and challenging periods facing our industry, the COVID-19 pandemic. Travel, especially international travel has been severely restricted or ceased altogether placing a greater emphasis on our “virtual world”. In many ways it is telling us we need to adapt to this new environment and find a path forward that keeps people safe whilst benefiting our shareholders. Whilst the pandemic has brought about restrictions on travel it has also had an impact on copper production in Chile resulting in a recovery in the copper price which is now heading back towards the US$3.00/lb benchmark price.
What this means for BEST shareholders is that it has certainly restricted our ability to operate. However we still believe Chilean copper offers an opportunity that has the ability to deliver in the short to medium term and as such we continue to focus on securing a significant Chilean copper project. Although we will continue to consider early stage exploration targets, we believe our focus should shift slightly to projects that are more brown fields or family owned mining operations that have the capacity to be expanded. This strategy has previously worked well with junior companies and Chile has numerous projects that fall into this category. Our focus now is to identify and deliver the right project for shareholders.
Earlier this year we finalised due diligence on an advanced mining concession we mentioned in our last update by retaining a local Perth mining consultancy to assess the drill data base compiled by previous exploration operators of the project. As a result of that work it was agreed not to proceed based not only on the results of the due diligence but also the asking price. We passed on our findings to the vendor via our Chilean partners, Espiga. The vendors, being the family business that owns the concessions, have continued to operate the small scale operations onsite with ore transported to the government owned Enami processing plant in the region.
Since that time and with the resulting downturn in the Chilean copper industry, the number of projects on offer to Best by way of Espiga has increased significantly and Best continues to assess all opportunities as they are presented. The vendor to the project mentioned above has also come back with revised terms and Best and Espiga are now assessing whether to make a revised offer based on a further amendment in price plus Best Chile taking over the small scale mining operations to generate local cash flow.
As part of this evolving strategy, we have restricted all spending wherever possible to maintain a positive cash balance (currently sits at ~$75k). This includes zero salary to Directors (as agreed with shareholders) plus we are currently negotiating a standstill agreement on the option payments due to Espiga for the Don Oscar and Los Chechos concessions where the planned exploration expenditure continues to be deferred. The only outgoings are minimal monthly administration costs plus consultants for the resource assessment and the new website.
We look forward to providing you with further updates on progress in Chile. Should you need any further information please do not hesitate to contact any of the Directors or visit our brand new website at www.bestminerals.com.au and click on the email link there.
Regards
Directors of BEST Minerals
Dear BEST Minerals Shareholders,
On behalf of the Board of Best Minerals, I welcome you to our latest email update.
Since our last update, your directors have continued to work on your behalf securing the Chilean copper projects which we believe will be the basis for BEST Minerals going forward.
As detailed in our last update, a Memorandum of Understanding has been executed with our Chilean partners Espiga SpA. Since then:-
I am sure you will join us in welcoming two of the Principals of Espiga, Sergio Avendano and Felipe Guevara, as Best Minerals shareholders.
We will now be pressing ahead with completing the final due diligence on the advanced mining concession we detailed in our last update. Subject to that due diligence, we will look to finalise negotiations with the family business which is currently running the small scale operation on this much larger significantly more advanced well located copper project. Best Minerals has an NDA in place and will now commence assessment of the significant drilling data base covering the property. We believe that this property has very real potential to be amenable to upgrading to company scale operations plus converting existing resources to JORC standard. The desk top studies and final evaluation of this project will continue whilst acquisition terms are finalised.
The slight delays experienced with the finalisation of the Espiga SpA Mining Option Agreement has had no impact on the budgeted outgoings detailed in the original Information Memorandum. The Directors continue to closely monitor the use of funds and will defer some of the planned exploration expenditure at Don Oscar and Los Chechos whilst negotiations for the new property are completed.
I look forward on behalf of Vic, Pat, Graeme and myself to providing you with further updates on progress in Chile.
Should you need any further information please do not hesitate to contact any of the Directors or visit our website at www.bestminerals.com.au and click on the email link there.
Regards
Directors of BEST Minerals
Dear BEST Minerals Shareholders,
On behalf of the Board of Best Minerals, I welcome you to our latest email update.
Since our last update, your directors have been very active on your behalf securing the Chilean copper projects which we believe will be the basis for BEST Minerals going forward.
It is fair to say we underestimated the time required to deal with Chilean bureaucracy associated with the incorporation of our wholly owned Chilean subsidiary, Best Minerals Chile SpA. The company is fully registered with Chilean authorities for tax purposes with the local corporate representative obligations being carried out by our Chilean legal representative, Manuel Matta from Aylwin y Compañia. A Memorandum of Understanding has been executed with our Chilean partners and soon to be fellow BEST Minerals Pty Ltd shareholders, Espiga SpA. Final due diligence sign off on all titles and approvals for the Don Oscar and Los Chechos projects is anticipated in the next few weeks which will enable the execution of the Mining Option Agreements with Espiga SpA for those properties.
In addition to the Don Oscar and Los Chechos projects, ESPIGA is in negotiations on our behalf with a family business which is currently running a small scale operation on a much larger significantly more advanced well located copper project. BEST Minerals has signed an NDA with the owners and has been given access to a significant drilling data base covering the property to assess. We believe that this property has very real potential to be amenable to upgrading to company scale operations plus converting existing resources to JORC standard. The desk top studies and final evaluation of this project will continue whilst acquisition terms are finalised.
Despite the slight delays experienced with setting up the subsidiary and the review of this new additional property, expenditure is in line with what was anticipated in the Information Memorandum. The Directors are closely monitoring the use of funds and are considering deferring some of the planned exploration expenditure at Don Oscar and Los Chechos whilst negotiations for the new property are proceeding.
I look forward on behalf of Vic, Pat, Graeme and myself to providing you with further updates on progress in Chile.
Should you need any further information please do not hesitate to contact any of the Directors or visit our website at www.bestminerals.com.au and click on the email link there.
Regards
Directors of BEST Minerals
Dear BEST Minerals Shareholders,
On behalf of the Board of Best Minerals, I welcome you to our second email update.
By now all shareholders should have received their share certificates confirming their shareholding. If you have any issues with the registry please feel free to contact our Company Secretary, Richard Joughin, from Wolfstar Group (https://wolfstargroup.com.au).
As flagged in our previous email update 3 weeks ago our Acting CEO, Graeme Sloan and I flew to Chile for a week where we met with Sergio Avendano, Felipe Guevara and Fernando Panca from our Chilean partners, ESPIGA. We travelled for around 4 hours north of Santiago by road to the Chilean IOCG Copper Belt in the Coquimbo Region (IV) around the town of Ovalle. We conducted on ground due diligence at the Don Oscar, Halley and Los Chechos projects. Following on from those site visits it was decided that there had not been sufficient exploration conducted on the Halley Project to meet our criteria of only taking options over advanced exploration projects.
We are now proceeding to engage with local lawyers, incorporate our Chilean subsidiary and finalise, subject to final local legal due diligence, the option agreements with ESPIGA on Don Oscar and Los Chechos. ESPIGA has proposed an exploration programme for the two projects and we have responded with additional suggestions on cost effective methods of generating drill targets such flying drone based aeromagnetics and photography for structural interpretations.
In addition to the Don Oscar and Los Chechos projects, ESPIGA introduced us to a number of other more advanced projects currently being operated by family businesses which are amenable to upgrading to company scale operations, some of which have existing resources which can be upgraded to JORC standard with little effort and expense. We will conduct initial desk top studies on these projects whilst ESPIGA continues to negotiate with the current owners on potential acquisition terms.
I look forward on behalf of Vic, Pat, Graeme and myself to providing you with further updates on progress in Chile.
Should you need any further information please do not hesitate to contact any of the Directors or visit our website at www.bestminerals.com.au and click on the email link there.
Regards
Directors of BEST Minerals
Dear BEST Minerals Shareholders,
On behalf of the Board of Best Minerals, I welcome you to our first email update.
Just over a week ago we successfully closed our first seed capital round, raising the full $150,000. We thank you our members for showing confidence in the BEST management team with your investment.
Our Company Secretary, Richard Joughin, from Wolfstar Group has dispatched the Share Certificates to your designated mailing address.
Tomorrow evening our Acting CEO, Graeme Sloan and myself will be flying to Chile for a week where we will be meeting with the team from our Chilean partners, ESPIGA, to conduct on ground due diligence on the Don Oscar, Halley and Los Chechos projects. Subject to a satisfactory outcome to that due diligence we will be meeting with our Chilean lawyer to finalise the drafting of the Option Agreements for those projects. Once those agreements are signed, ESPIGA can then start the first pass exploration on the projects with a view to generating targets for future drilling.
I look forward on behalf of Vic, Pat, Graeme and myself to providing you a further update on our return from Chile.
Should you need any further information please do not hesitate to contact any of the Directors or visit our website at www.bestminerals.com.au and click on the email link there.
Regards
Directors of BEST Minerals