Red Emporer Release has more financial details, Cut and Paste...

Red Emporer Release has more financial details,

Cut and Paste from RMP ASX annoucemnet made today.

Red Emperor (Farmee) has entered into a Heads of Agreement with Africa Oil Corp and its 100% owned
subsidiary Canmex Holdings (Bermuda) II Ltd (Farmor) to earn a 10% participating interest in each of the
Dharoor Project and the Nugaal Project (Transaction). The Farmor has a 65% interest in each of the projects.
The Farmee will first earn a 10% interest in the Dharoor Project by paying 20% of all costs related to the drilling
of one exploration well on the Dharoor Project. The payment of 20% of related drilling costs will apply for the
initial US$25 million of gross costs only and thereafter the Farmee shall only pay 10% of all related drilling
costs.
The Farmee may, at its own discretion, exercise a right to increase its participating interest in the Dharoor
Project by advising the Farmor in writing on or before 31 August 2010. The Farmee will then earn a 20%
participating interest in the Dharoor Project by paying 30% of all costs related to the drilling of one exploration
well on the Dharoor Project, plus a payment to Africa Oil of US$1 million for the reimbursement of prior
expenditure. This payment is due on the spudding of the first exploration well in the Dharoor Project. The
payment of 30% of related drilling costs will apply for the initial US$25 million of gross costs only and
thereafter the Farmee shall only pay 20% of all related drilling costs.

So as you can see, the financial commintment by Red Emporer, is $5 Million US, up to the first $25 Million of drilling cost and then 10% there after.
And increasing to $8.5 Million US, and 20% there after, if RMP decide to increase stake to 20%.

So all in all not a bad commitment, and for those jumping the gun, considerably more than $2.8 million.

Cheers

jamit01