Ann: Webinar - El Zorro Gold Project Drilling Results, page-34

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GT55

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24/11/21

16:14

Post #: 57822250
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Originally posted by Bubbles101: ↑

I'll just recap for you GT

The original JV earn in structure looked like this

Once Stage 4 (80%) was reached it was always going to convert to contribution or dilution, with the option to buy out the JV partner.

March 2020 TSO accelerated ownership via the JV to 70% ahead of schedule.
The JV partner was also issued 5,000,000 shares in ASX:TSO, so no 'grab' there

In July and then September 2020 TSO substantially expanded their concession holdings, all under the structure of the JV, with no apparent contribution by the JV partner, creating an imbalance in the structure weighted in TSO's favour.

Early transition to contribute/dilute was about risk mitigation.

Imagine the blind panic that would be going on right now knowing we probably wouldn't complete
the next milestone for 80% ownership.

As for the MRE release and the issue of performance shares, if I was working in Chile for 10 years, came across a fantastic prospect and convinced my mate with all the money (Geoff) and some local Chilean mates (one who has been our top shareholder since the 6c raise) to come in and start our own exploration and turn it into an ASX listed publicly traded company, I would want to maintain as much control over it as possible.

Unfortunately for the share price, release of the MRE in time for Class A shares allowed them to claw back substantial holder status. And the biggest shareholder at over 10% now is not even Zeff, it's Geoff McNamara. You call it wealth creation, I call it running a company that only started because of the initial work that they did.

How some people have managed to tie it in with some big conspiracy theory about the JV valuation is beyond me.

Expand

B101 the MD used Chilean corporate law in an attempt to void the original agreement with the vendor and attempted to take the last 20% of the project, this has been discussed at length on here before.
This is the basis for the vendors claim.

TSO Price at posting: 7.6¢ Sentiment: None Disclosure: Not Held
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