Now that you've point that out it does sound like an agreement to agree. Surely the lawyers are all over it this time around
?????Esh
"Kidman and SQM have entered into a
binding letter agreement in relation to the proposed JV
setting out the broad terms of the arrangement and
committing the parties to work towards negotiating and finalising definitive agreements."
"As an advance on the proposed joint venture expenditure contribution, SQM will provide a US$21.5 million (A$28.67 million) convertible loan facility to Kidman
following execution of the formal documentation"
The convertible loan facility is not payable until the formal JV is concluded and the announcement only says this is expected to be completed by 30 September 2017. KDR will need to draw down its remaining cash if it wants to keep the project momentum going and it won't receive the loan payments before 30 September by the sounds of the announcment.
"
The parties expect to conclude definitive JV documentation by 30 September 2017"
The 30th of September is not a contractual deadline date. If the JV negotiation gets delayed that will potentially force KDR into seeking funding from somewhere. Always good to read the fine print hey.
What did that judgement say about the imposibilty of an an agreement to agree?Esh
