My thoughts are it would be some sort of earn-in agreement...

My thoughts are it would be some sort of earn-in agreement staggered according to the stages of the project milestones. Each milestone hit equals a greater % interest and funding released into the JV vehicle from which PEK will operate and oversee the project. This limits the risk of the entering party.

It seems as though it is somewhat of a done deal as they appear happy to proceed on the scoping study estimates/economics as that was mentioned as a yardstick. This is in contrast to other MOU's where it is more of a speculative wait and see what we get then we will talk. So terms should only improve as the improved studies/economics come in.

I would imagine there may be an equity stake taken in PEK shares as well, so possibly some dilution. (See Glencore & Blackthorn deal)

The mention of PEK as operator would suggest they have not sold >50% of the asset though.

I prefer a direct project approach over a dilutive equity approach as it realises better value in this type of market. This will also give visibility as to what the asset is currently being valued at and give an idea of what PEK's stake is currently worth.

Would be good to compare this figure against the Zari stake the Co bought out and see how much value has been added since, rather than taking the equity based approach and issuing a tonne of discounted and significantly undervalued shares.

Im not confident on the boards deal making ability but see how they go. Should spark the interest of other parties as well. Hopefully we have a European or Korean/Japanese partner although I have a feeling we may be dealing with the Chinese.