RE: Do you people not get embarrased?1 Apr 2023 18:20
Ella I don't think we have to worry about cash.
The key commercial terms of the Joint Venture that have been agreed in principle in the Agreement are as follows:
- Upon signing of the Joint Venture Documents ("Effective Date"), a Joint Venture vehicle will be formed with initial ownership interests by Anglo American and Arc of 70% and 30%, respectively ("Initial Ownership Interests");
- Anglo American has the right to retain an Ownership Interest of 51%, by:
o funding exploration expenditures equal to USD 24,000,000 on or before the date that is 180 days after the third anniversary of the Effective Date ("Phase I End Date"); and
o making cash payments to Arc Minerals totalling up to USD 14,500,000, as follows:
§ USD 3,500,000 upon signing of the Joint Venture Documents ("Effective Date");
§ USD 1,000,000 on the first anniversary of the Effective Date;
§ USD 1,000,000 on the second anniversary of the Effective Date;
§ USD 1,000,000 on the third anniversary of the Effective Date; and
§ USD 8,000,000 by the Phase I End Date.
- Following the completion of Phase I, Anglo American will have the right to retain an additional ownership interest equal to 9% (for a total ownership interest of 60%) by funding USD 20,000,000 of additional exploration expenditures within 2 years of the Phase I End Date ("Phase II End Date")
- Following the completion of Phase II, Anglo American will have the right to retain an additional ownership interest equal to 10% (for a total ownership interest of 70%) by funding USD 30,000,000 within 2 years of the Phase II End Date.
- Anglo American, for as long as it holds the largest interest in the Joint Venture, shall have the right to nominate three directors and Arc shall have the right to nominate two directors. Joint Venture board decisions shall be adopted by simple majority vote.
The Agreement sets out the core principles under which the Joint Venture will be formed subject to satisfactory due diligence, a restructuring of the Company's assets in preparation for the Joint Venture, negotiation and execution of definitive agreements, the approval of the transaction by the relevant boards of directors and the relevant government and regulatory authorities and other customary conditions.
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