Nextsource Materials Inc (NSRCF)

[Luke_McCain]

Who owns Exploration Permit #3432? (Molo Graphite Project)

From: http://getfilings.com/sec-filings/160928/Energizer-Resources-Inc_10-K/

number of extremely high risks was reduced to two. These risks are:

1. The exploration permit covering the Molo pit expired in 2011 and has yet to be officially renewed (Exploration Permit #3432 is the permit in question).

Exploration Permit #3432 is currently held under the name of a subsidiary of Malagasy Minerals called, Mada-Aust Sarl.

This current permit expired on August 17, 2011.

Energizer continues to diligently work with the Madagascan government to obtain the necessary permits in its name as the country clears its backlog of applications and amendments.

From: http://capmetals.com.au/wp-content/uploads/2016/01/150731_Quarterly_Activties_and_Cashflow_Report-2.pdf

 
 Title Number      Permit Type        Grant Date        Expiry Date 
  
 3432              PR                 18-Jun-01         17-Jun-11

June... August... whatever. Maybe there was a 60-day "grace period" involved.

From: http://capmetals.com.au/wp-content/uploads/2016/01/151126_MGY_AGM_Presentation-2.pdf

Existing Malagasy assets which are excluded from the transaction are the subsidiaries (both in Madagascar):

• Mada-Aust SARL, which holds the tenements containing the Maniry graphite project in particular, but also other graphite and mineral prospects, together with labradorite mining leases.

• Mining Services SARL, which is a drilling and sample preparation company.

• These companies will be folded into a newly incorporated Mauritian company, to be named Madagascar Graphite Limited, and a new Australian parent, Malagasy Graphite Holdings Ltd.

From: https://www.sec.gov/Archives/edgar/data/1302084/000110262416002120/energizer10q.htm

Additionally, this permit expired in 2011 and has not been renewed despite our efforts to do so. The Company has continued to pay taxes and administrative fees in Madagascar with respect to our mining permits including the permit relating to the Molo Graphite Project (although such permit is not in the Company's name). These payments have been acknowledged and accepted by the Madagascar government. Further, in order to advance the Molo Graphite Project, the current permit will need to be converted into an exploration permit in the name of the Company or one of its subsidiaries. The Company cannot provide any assurance as to the timing of the receipt of the required permits.

From: https://www.sec.gov/Archives/edgar/data/1302084/000113717115000165/energizerforms1-06182015.htm

our exploration permit expired in 2011 and has not yet been renewed. Failure to renew the exploration permit or convert it into an exploitation permit would prevent the advancement of the Molo project.

Our only material mineral property is the Molo Graphite Project. As a result, unless we acquire or develop any additional material properties or projects, any adverse developments affecting this project or our rights to develop this property could materially adversely affect our business, financial condition and results of operations.

So, there are two companies, two name changes, several management personnel changes, and subsidiaries in both Madagascar & Mauritius involved here, at the very least.

Mada-Aust Sarl (Madagascar) or Madagascar Graphite Limited (Mauritius) are both subsidiaries of Malagasy/Capricorn, so one thing is for certain: NEXT/Energizer have never had official/legal rights to #3432.

Major red flag. Caveat emptor.