Research Notes on GPP Guyana Morabisi Project, Coal to Liquids Project & SOP projects, page-5

Post #:19848158
Terms of the Transaction (JV) with GSM

The binding Heads of Agreement which GPP has signed with Guyana Strategic Metals Inc (GSM) is very low cost for the opportunity it offers.

It is made of 4 earn-in stages.
GPP has paid non refundable $40k only to take the option and make the due diligence in 45 days.

The total cash will be paid to GMC directly is only $140k (inc. option fee)

The total of shares will be paid to GMC is only 52.5m (half of the trade shares today!)

The total expenditure for 3 stages which GPP has to make is only $1.7m.

I have put them in a table as below.



If after the Phase 3 Earn-in GPP elects to withdraw, it will be entitled to receive a 1.5% net smelter return royalty from all minerals produced and sold from the Morabisi Project.

Following successful completion of the Phase 4 Earn-in, the parties will together form an unincorporated joint venture, to be managed by GPP (Joint Venture).