RE: Prospectore shares4 Nov 2021 15:39
From the pdf
Anglo Buy-Back Option To Monetise Project Value
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)
Exploration Project - EL’s 8305, 8306, ELA 5168
1. EL’s 8305, 8306 and ELA5168 comprise the Exploration Project surrounding the “core” EL5574
containing the Racecourse Mineral Resource
2. ProspectOre is in the process of purchasing a 100% interest in the Exploration Tenements from AA
3. AA will retain a 1.5% Net Smelter Return Royalty
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