For the Newbies owning VAN shares who may not know the history. The two agreements with DAU are summarised as follows:
1. DAU and VAN K2 BTS May 2017 (terminated)
Dampier will contribute the lesser of 50% of the Capital Expenditure (CAPEX) or $3 million to the: Development of a mine at the K2 Deposit; Exploration for and mining of gold ore at K2 and its processing for the extraction of gold; and Any other item, as agreed by the Joint Venture. The funds provided by Dampier are to be made in tranches to be approved by the Joint Venture. In consideration for its funding under the Joint Venture, Dampier will earn a Joint Venture interest in K2 equal to the lesser of: - Its funding as a percentage of the CAPEX; or 50%, within the two year period from the Commencement Date.
2. DAU sale of Plutonic Dome to VAN January 2016
The consideration to be paid to Dampier by Vango is a maximum amount of AUD$8.2m as follows:
(a) Non Contingent Component:$2,200,000 (excluding GST), (PAID)) (b) Contingent Component The following amounts to be paid by Vango within 7 days after the occurrence of the following events: · $1,000,000 (excluding GST) on production of a total of 45,000 ounces of gold · $1,000,000 (excluding GST) on production of a total of 100,000 ounces of gold · $1,000,000 (excluding GST) on production of a total of 200,000 ounces of gold · $1,000,000 (excluding GST) on production of a total of 300,000 ounces of gold from the Project tenements.
(c) ROYALTY Vango to pay a production royalty on overall production from the Project tenements. The royalty is capped at A$2 million.
