A collection of reasons why you should NOT invest in TSO!, page-404

Hi@Bellavena85

My understanding of the Tesoro Chile arrangement with Sr Bahamondes is simply this;

To advance to 70%--Which TSO did, thanks to the July 3rd General Meeting resolutions 1 and 2 being approved by shareholders, TSO paid US$50,000 to Sr B and TSO gave him 5,000,000 (Acceleration) shares which will be held in escrow until 5th Feb 2022. In addition to the 70% interest in El Zorro gained, TSO was able to remove the remaining US$2,000,000 exploration commitment that had to be completed by 17th Jan 2021. This appears to be an endorsement by Sr B of the huge potential of El Zorro as he has forgone the $2M spend requirement in lieu of 5M in shares which equates to a "premium" of 40 cents per share ($2M/5M shares). I know more experienced guys than I, such as @Corgi and@Hateful8 etc have mentioned this as Sr B's way of valuing the company shares in the short term.

To advance to 80%--TSO will have to pay another US$50,000 to Sr Bahamondes by 17th Jan 2022. In addition, TSO will have to complete the Feasibility Study and I don't see a time constraint to do this by.

To advance to 100%--The official wording is" the parties have agreed to negotiate in good faith to finalise an agreement to give Tesoro the option to acquire the remaining 20% interest in El Zorro". There is no mention of payment in cash or shares that I can see. There are a few more things mentioned should Sr B and TSO not come to an agreement such as sharing costs moving forward or diluting his shares if he chooses not to contribute. I believe TSO have first right to buy him out as well should Sr B chose to sell.

I hope that summarises things...I think Sr Bahamondes is here for the long haul--taking up shares in TSO instead of cash speaks volumes!

Cheers all. M8