I couldnt access MNE web site to compare apples with apples
This deal here fell over because Swingplane Ventures defulted on its obligations.
The deal Swingplane entered into. The option allows the holder to earn a 75% interest in 11 Roble tenures and 21 Angela tenures in the mining area of El Roble Y Algarrobo by making a series of payments totaling $2.70 million to the optionors and spending $20.0 million towards mine development, in addition to being subject to three other conditions described below.
To-date (read then), $1,200,000 had been paid to Gunter Stromberger, Elsa Dorila Duarte Horta and the Sociedad Legal Minera (Legal Mining Companies) controlled by them as required under the option agreement. Two other payments of $750,000 each must be made by Swingplane on or before June 30, 2013 and June 30, 2014, respectively, in order to keep the option in force. In addition, by April 23, 2015, Swingplane Ventures must expend $20,000,000 (half of which must be expended by October 23, 2013) towards the exploration of minerals and the development of mining operations in order to fulfill the terms of exercise. Also, until Swingplane Ventures constructs a mill to process the ore, the rights of production are retained by the optionors (Gunter Stromberger et al). After a mill is constructed, the optionors will be entitled to one-third of the net proceeds until $5,000,000 is received, and thereafter the interest of the optionors will revert to 25%. Swingplane must make all necessary payments to maintain the tenures in good standing during the option period. Lastly, Gunter Stromberger will act as field supervisor for the project (for a fee of $25,000 per month) until the 75% interest is earned by the Swingplane Ventures.
Seems our blokes negotiated a much friendlier and cleaner cash deal without the capex hurdles and spend. And without the clawback of income back to the vendors.In fact I have no idea what the yanks were thinking to a deal like this. the capex timeline leads me to think they were snorting the white stuff.
MNE Price at posting:
2.8¢ Sentiment: ST Buy Disclosure: Held
