Ann: 80% Ownership of Olympic Domain Tenements Achieved, page-188

@speculativet,

You are both very right, and horribly wrong.

The Farm-in Agreement is outlined clearly for Public scrutiny, including all Terms and Conditions, Roles and Responsibilities, Opt-Out's, Break Free Fees, etc., All very basic stuff for this type of an agreement in the land of Oz.

I suggest you conduct a little Due Diligence and go back through the CHK announcements over the past Three years. Some key dates for you: 07/03/18., 27/02/19., 05/05/20., 16/09/20. Moot point is this Farm-in agreement has now morphed into a Joint Venture agreement, albeit that ODPL wish to contest this status due to their co-funding obligations going forward. Or suffer equity dilution.

From my point of view, at the initiation of the Farm-in, both parties agreed a fair valuation for the 7 Tenements to be $2.5Mill plus of minus. Equation being., CHK expenditure obligations being $1.5Mill., $250k in Cash relating to incremental achievements., and $300k at finalisation in Cash or Equity buys the 80% ownership. Management fees hither and thither therein.

Does this still hold water? I doubt it!

Ongoing expenditure since the purported date of the JV undertaking has been substantial. Say a further $500k? HWDD04 alone would take out half that. On the above valuation basis is ODPL obliged to stump up $125k(20%) or suffer a net dilutionary effect of 5%. Clearly not. Fair? If not, then what is a fair valuation platform?

I put forth CHK's Market Cap, and the increase in value thereof post the JV being achieved as a possible alternative. To perhaps explain ODPL's motive for stalling the JV onset. This too would be open to much debate, namely the quantum of that which is credited to the JV tenements and that which is to be apportioned to Wee MacGregor, Pyramid Lake etc. And there is no end of other probable's that One could put forth. The point is that, if the short term impasse is not resolved in the stated Mediation, then the Silk's will have their day and they will party long and hard at the expense of both parties.


While you're at your Due Diligence. Have a look over all the Geophysical information to hand over the course, in relation to the Four DD's undertaken!

Also what is, and is not known by the Board of Directors now, and at their most recent buy in juncture might be worth some consideration. There's more than "50 Shades of Grey", and Who's humping Who here than in many a Mills and Boon.

All in my humble opinion.