RE: Mining.com24 Nov 2022 19:36
From the RNS:
"Marketing Agreement" means the marketing agreement dated 22 November 2022 regarding the grant of OFFTAKE [my caps] rights in respect of the supply of high quality iron ore product from the Project ..."; and
the sale price formula is transparent: "The price payable for each shipment of Product shall be the Final FOB Value (as defined in the Marketing Agreement) of that shipment, which shall be calculated in accordance with the detailed provisions of the Marketing Agreement, based on the price which is achieved by Glencore International in the market when it sells the Product to a final buyer..."; and
"Royalty" appears only in this context: [if there's a change of control of NewZIOC and it wants to cancel /replace this Marketing Agreement with another, GLEN firstly has the right to match terms. If it elects not to and] agrees to the termination of the Marketing Agreement...it shall be entitled, for the term of the New Marketing Agreement and / or any replacement or supplement to such agreement, to receive a fee in each calendar month by way of CONSIDERATION FOR THE INITIAL MARKETING ROLE played... under the Marketing Agreement ("Royalty"), said agreement to be "in a form acceptable to Glencore International acting reasonably."
GLEN as a continuing shareholder has no incentive to try to rip off NewZIOC (where its interest has changed only marginally, from 50% to 48%); quite the contrary: if NewCo is as profitable as we all hope), it has every incentive to stay the course...
I'd like to know more what the provisions re 'production from Affiliates' might refer to....
and I imagine that the assertion that, following Completion 'the Company believes it will be significantly more attractive to a broad range of investors on the AIM market..."is a tongue-in-cheek reference to GLEN's recent travails, given that one of the conditions precedent is
(f) the adoption by the Company of a revised anti-corruption and bribery policy....
Very droll.
;->
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