RE: Countdown2 Sep 2022 10:40
From my understanding from the RNS and Bill's interview the 60 calendar days was initiated from Aug 31 as the mandate letter was signed the evening before.
So the exclusivity rights end either when
- well 60 calendar days elapse from 31st Aug onwards
- IOCA provides the financial model and supporting docs to AA within the allotted 60 day period period
- the exclusivity period may be extended if both parties agree to an extension
He didn't state if the purpose of the meeting next week was to discuss/present the financial model but it could be possible - but not a certainty IMO. It may be to discuss the detail in the mandate and proposals around the deal while the financial model is being built. All good news though and part of the process in completing this :-)
RNS
Exclusive right commences immediately and will conclude the earlier of 60 calendar days after IOCA delivers to Anglo American an agreed Base Case Financial Model together with all necessary supporting documents or such later date that the parties may agree upon.
INTERVIEW excerpts
* Your wholly owned subsidiary IOCA (Iron Ore Company of Australia) has entered into a mandate letter providing exclusive rights to negotiate project funding and off-take arrangements with Anglo American, big company there so take us through the details?
- Signed this mandate letter now that we now get into what Lloyd in Perth calls the ‘long dock’ process whereby they’ll dig deeper into a Due Diligence (DD) of technical, financial, licensing and permitting aspects that are related to the project today and where we’re at the next couple of months and where we aim to get too
- Key is a financial model which we’re pretty close to completing already and they’re keen, like to think they see the value in the project and the longevity so they’ve come to the table with this sort of outline mandate and proposal
* So, saying this exclusivity period starts immediately and will conclude the earlier of 60 calendar days after providing all supporting documents or such later date that the parties agree upon?
- That’s correct, essentially mandate letter signed last night (30th August) so the green button has been pressed and got a meeting with the AA team later in the week
- They’ve already had vision of certain technical data and not going to go into this blind, constantly adding information, data , licensing information and permitting updates
- feel deal will also add kudos to the project in terms of other possible stakeholders and parties involved seeing that there is a very large company supporting the project and it’s an economically viable project to take into production and will hopefully add momentum to the various pieces of other work being done to achieve first production .
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