The details of the agreement are it is a farm-in agreement whereby MCT must contribute $5M to earn 51% of the project. Once the $5M has been spent the total project reverts to a joint venture at 51% MCT and 49% NME.
It is important to note that until the $5m is contributed MCT are not entitled to any percentage, its not a progressive farm in but all or nothing. (At an educated guess I think the spend so far would be around $2.5M but I will get that confirmed with Jason and Ken).
The $5M spend to reach the JV status includes: *Exploration, - drilling, assay labs, the drone surveys etc. (plenty being done here) *Addition tenement contribution - the costs incurred in picking up new leases and adding them to the JV (they have already added a number of new leases) *Meeting outgoings on all tenements - MCT are currently paying all of NME's rates outgoings (this has been done and included them subscribing for $100k of NME shares at the outset) *Any other expenditure agreed by the both parties.
Once the JV status has been reached any further costs such as exploration, tenement outgoings and mining( if they get to it) are split 51/49 as are ultimately any profits.
So in a nutshell the deal sees MCT having to outlay $5M to access to a very promising project and NME effectively sit back with zero cost but effectively relinquish 51% of their ownership. In my opinion ultimately a good deal for both parties.
