Ann: Tesoro increases ownership of El Zorro to 85%, page-66

Great post!

On the JV, I don't feel either partner is disadvantaged by what has happened.

The original deal was:
1. $100,000usd payment for 10% which was completed by 18/01/18.
2. $50,000usd payment and exploration expenditure of $2,000,000usd for 51% which was completed by 01/10/18.

3. $50,000usd payment and exploration expenditure of another $1,500,000 for 70% to be completed by 17/01/21.
But at this stage we brought it forward to March/April 2020 by making the cash payment and issuing 5,000,000 shares to the vendor/JV partner. These shares are is escrow until 05/02/22.

4. $50,000usd payment and feasability study for 80% to be completed by 17/01/22.
Where we are now, JV has changed to an earn or dilute structure. This is now much larger than anyone ever thought. We are now about to put another $7million+ into exploration, a lot more than the small steps before. Structure was always a payment and earn in deal.

This amount of expenditure benefits both partners. The other partner/vendor never had the capital for exploration at the early stages let alone at the level we are now. Giving away 15% but gaining via the level of exploration, not bad at all.

Minor JV partner is also a TSO share holder like us.