Ann: 80% Ownership of Olympic Domain Tenements Achieved, page-179

@kieth1308.

There is game afoot. A Mexican standoff, albeit with only Two participants. The Farm in agreement is lock-tight. No dispute there. That is evidenced by the fact that they (Olympic Domain) have prior accepted both the incremental expenditure milestones, and have conceded that at this interval 50% equity has been achieved by CHK. Why are they not accepting this 80% increment I here you say.

Easy answer. At this 80% juncture they (Olympic Domain) have to Co-contribute $ for $ to avoid further dilution. Needless to say, they (OD) want the project's development to continue, and at haste as we all do! Their problem is, "Where do we get the money for that". My thought is, they don't have a lot of Coin. If any? Had they, they wouldn't have agreed to an 80% equity for the pittance of $1.5Mill spend in the first instance????

In my opinion. Here in lies the kicker. They (OD) want/need exploration results. Why? To crank up CHK's Market Cap. This will provide a Twofold effect. (1) It will make borrowing said funds to co-contribute and maintain their equity a whole lot easier to come by. And if not., (2) it will greatly reduce the quantum of their dilution going forward assuming they can't raise the needed funds. The Sum hereunder will explain.

The Sum: Assuming that OD cannot co-contribute. CHK at a Market Cap of $50Mill, here-out expends say $5Mill on exploration, IE 10% of market value., OD must stump up same, or suffer a 10% dilution. At a CHK Market Cap of $100Mill, same expenditure $5Mill, they would suffer a lessor 5% dilution. At $200Mill, 2.5%. Get the picture?

CHK management is savvy! They're holding all the cards. They're in no hurry to fast track anything. Stall by whatever means they legally can??? It will not change the end game.

Mediation is not a drawn out process. Generally sorted out on the day. Sometimes a long day. If not the due process is the Courts. From my point of view I seriously doubt that either party will allow that to happen. If the OD Guys or Gals are half smart they will negotiate a holding in CHK and let the Project proceed post haste. Everyone's a winner!

It's all My Opinion Only.