GoldQuest has agreed to issue Lundin five million shares, subject to approval of the TSX Venture Exchange, to purchase all of the outstanding shares of Lundin SL, the Spanish company that holds the Toral Project and the second project currently under application and has access to the historical exploration database.
Lundin will retain a 1.5% royalty on the Net Smelter Return (NSR) from the Toral Project. Lundin also retains a one-time back-in right to reacquire a fifty-one (51%) percent interest in the Toral Project once GoldQuest provides written notice to Lundin within 10 days of the following events occurring: delineation of an inferred resource on the Toral Project of greater than 1 Million tonnes of lead and zinc (contained), as demonstrated in a NI 43-101 compliant report, and completion of not less than 5,000 meters of drilling.
To exercise the back-in right, Lundin must (1) spend an amount equal to 2.5 times the aggregate expenditures made by GoldQuest on the Toral Project and (2) pay an amount in cash equal to 51% of the value of the shares issued by GoldQuest under the agreement. If Lundin elects to exercise the back-in right, the right of Lundin to receive the 1.5% NSR will be terminated.
Upon completion of the above, a Joint Venture will be formed pursuant to which Lundin will have 51% interest and GoldQuest will have a 49% interest in the Toral Project. Upon formation, each party will either fund their proportional share of the expenditures or Lundin may elect to increase its participating interest in the Joint Venture from 51% to 65% by completing a full feasibility study on the Toral Project.
This is a paragraph note the mention of Gold !!!
GoldQuest has gained access to a large amount of historical exploration data covering northern Spain. The data, the majority of which is in hard-copy format, has been collected over many years and covers a wide variety of commodities including gold. It is the intention of the Company to compile and incorporate the data into a digital GIS database, the best targets of which will be followed up. Lundin maintains a one-time Right of First Offer on projects that are generated in a defined area of interest.
Lundin are worth $4.8 billion so I am sure the odd £100 mil is small change to them
