RE: Annual Mineral Resources and Ore Reserves Statement2 Jun 2022 15:03
Hi Dip, I don't think there is now any doubt, whatsoever, IMHO, that we'll be going to arbitration, as I expect we both will (Greatland Gold & Newcrest Mining) be significantly over a 20% variance in what each party believes is FMV.
My concern, as is often the case, is in the contractual wording that we've seen so far.
It's not clear, and never has been, as far as I can see, and without sight of the full contractual terms & conditions, as to what the two parties actually agreed to!
The RNS wording states, very clearly, that, "Under the joint venture agreement, if the option exercise price cannot be agreed by this date, each party is thereafter required to notify the other of its assessment of fair market value. If both parties' assessments are within 10% of each other (now 20% as agreed), the option exercise price will be the average of those assessments. If both parties' assessments are not within 10% (now 20% as agreed) of each other, the parties will proceed to independent expert determination, with the expert being required to determine which of the values nominated by the parties is to be the fair market value."
So, what does this actually mean?!
If the RNS T&C are clear and accurate, then the arbitrator has to chose between the two figures.
Let's say that we're 50% apart in our (GGP & NCM) figures for FMV. Then does the arbitrator have to chose which is FMV, without giving their opinion?!
Sorry, but it's just not clear from what we have available to us! Maybe it was just badly worded? I don't know.
In conclusion, as far as i can see it, WE JUST DON'T KNOW.
If anyone can post something different, with facts, then I'm more than happy to take that aboard.
I just hope that this won't develop into a legal argument, since, as many of us know, the only winners are the lawyers!
GLA & DYOR
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