Key terms of Acquisition of Mount Bonnie and Iron Blow
(as written by PNX in 2014)
- Phoenix Copper will acquire Mining Leases (Sale Tenements) including those that contain the Iron Blow and Mount Bonnie deposits in exchange for a 2% royalty over the market value of gold and silver contained in concentrate production from the Sale Tenements.
- Crocodile Gold (now Kirkland Lake) has the right to clawback a 30% interest in the Sale Tenements within 6 months of the completion of a Pre-Feasibility Study by paying Phoenix Copper three times its accumulated expenditure on these tenements.
This is a real Canadian deal and one that has stymied the share price and will continue to do so.
This deposit under this arrangement only benefits major shareholders as they have the ability to get out what they've put in if Kirkland buys back 30%. Buying back a controlling 30% stake for peanuts is a fantastic play for Kirkland. What they then decide to do with it is then left open. Again stymieing the share price.
This is a day traders / penny stock dreamers perfect little play.
Talk about it becoming a Zinc mine in the near term is a joke,..........
unless they find a fairy godmother that can alter the commercial terms of these agreements.
"three times its accumulated expenditure on these tenements" for a company controlling 30%.
