The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
If we prove up the resouces AA buyout of the project is very likely, IMO (See Page 12).
https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf
Racecourse Deposit - EL 5574
1. EL5574 was purchased 100% by ProspectOre from Anglo American (“AA”) via a Sale and Purchase
Agreement
2. AA have a “buy-back” opportunity, giving ProspectOre a mechanism to monetise exploration success:
a) If a deposit of greater than 2M tons of contained CuEq (i.e. 450Mt @ 0.45% CuEq) is ultimately identified. AA
may buy-back 80% of the deposit at fair market value as determined by an independent expert in accordance
with the JORC and Valmin Code. Parties are to then pro-rata fund to maintain 80/20 or ProspectOre may dilute
which ultimately ends with ProspectOre retaining a 0.75% NSR
b) If a “Decision to Mine” is taken by ProspectOre prior to the identification of a 2M ton contained CuEq resource,
AA also have an opportunity to exercise the buy-back
c) AA have a once only opportunity (before it falls away) to exercise the 80% buy-back whether the opportunity
comes through the discovery of 2M tons of contained CuEq or a decision to mine.
d) If AA does not exercise the buy-back and ProspectOre ultimately develops a mine, ProspectOre would have a
100% project interest less 3.5% NSR royalties and a $7.5M development payment to historic holders (which
includes AA)
Very interesting to see broad sheet for different valuation, hopefully all to be revealed very soon.
Based on stated/known projects, the Bushranger indeed seems like it will become the flagship project.
The stars are aligning now for XTR.