It will not affect our share at all. Works have halted. What it means is, if either party is required to stump up cash 'pro rata' for the operational payment (there is no operation at the moment), and can't, their share will be diluted.
'ECR is currently the operator of the Danglay project with the right to earn a 50% interest therein by obtaining, for CTGR, a mining licence for the project. The Company has already earned a 25% interest in Danglay by disclosing a resource estimate in accordance with NI43-101. ECR has the right to terminate the current earn-in agreement at any time and retain this 25% interest. In that event, any future expenditures in connection with CTGR and the Danglay project would be expected to be contributed by ECR and Tiger pro rata, or else the interest of the non-funding party would be diluted.'
Here the last sentence is important to me saying 'the interes of the non-funding party would be diluted' and this in conjunction with Tiger International Resources' recent statement 'We complied and chose to lay off staff, continuing with a skeleton management crew'.
So is Tiger now a non-funding party or not? Can we 'terminate the current earn-in agreement' and seize the remaining 75% of the 'non-funding party'?
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