Ann: General Security Agreement, page-410

@Noobtrader1 - also a response to you

Yes, i recognize enormous the increase in the land concessions and no doubt we're seeking a higher % ownership of the project. The ultimate goal was to own it all and there was a really simple agreement to acquire it.

I don't disagree that the outcome from the meeting was a strategic move to increase ownership.

However, as a condition precedent to the JV Company actually being to function under law and the subsequent events that took place. Note this. The existing agreement had to be terminated.



I'm just looking at it from the other end of the deal. Why would the vendor have agreed to terminate this? they were protected under the original agreement. Some may say they want more ownership? so they'll contribute in this instance...but that is bullshit.... because the contribution only means they maintain the 30% until Feb 22. Following that, they'd still be on the hook for more capital contribution. Where we are going to be at Feb 22 is a fairly advanced stage and it's usually at this stage where the most capital is raised to transition into the next phase of development. This will be the last time i harp on this, but, why would the Vendor risk diluting himself out of everything when under the original agreement, he had 20% + a really early & near term milestone to negotiate a sale of his stake? I.e. he is giving up say $10 Mil+ over the next 12-16 months. To now being in a position of not knowing how much he'd need to contribute after Feb 22 or risk losing everything. Because, TSO now has the necessary power to make Unilateral Decisions and the Vendor can't do jack shit about it. Hence, my use of the $100Mil figure (hypothetical, big and round number).


Yes, there is definitely more to this, the ann did also state that a number of other matters were discussed. But, Like i said, put yourself in the shoes of the vendor, why did you agree to terminate the original agreement and open yourself to so much risk, which on face value is a dud deal for you?....

On another topic, one this that i did pick up now that i didn't before, is that we have secured concession and what looks to be an easement from the ocean right through to the project site!! this is Huge & a major Derisk!! This concession wasn't secured as part of the Ann in 23/9/2020