Key Terms of the Chuscal JV • Metminco and AngloGold have formed the Chuscal JV with ownership: MNC 10% and AngloGold 90% • Metminco can earn a further 41% interest by spending US$2.5 million over 3 years, including at least 7,500m of drilling. AngloGold is free carried during this period • Once Metminco has earned its 51% interest, the parties may participate pro rata or dilute. On a party being diluted to 9.9%, the participation of the diluting party reverts to a 2% Net Profit Royalty • Metminco is the manager of the Chuscal JV • AngloGold has a one-off right to buy back a 21% interest from Metminco on the publication of a JORC resource of at least 3 million ounces of gold. o the price of the 21% interest is to be agreed between the parties or determined by an independent valuer o on exercise of the buyback right: ownership will be AngloGold 70% and Metminco 30%. AngloGold will be manager of the JV o AngloGold will free carry Metminco through feasibility and until permits have been granted for a +250,000oz annual production, development proposal. • Other terms as usual for a joint venture of this nature.
MNC Price at posting:
9.1¢ Sentiment: None Disclosure: Held
