Referencing COB’s ‘Replacement Prospectus’ dated 30 Dec2016, Section 13, ‘Material Contracts’ p189 (
https://www.cobaltblueholdings.com/wp-content/uploads/2016/12/COB_R_Prospectus_30Dec16.pdf)
The Earning
1) The ‘Earning Period’ doesn’t end until at leastJune 2020
2) COB
can withdrawfrom the TJV which allows BPL to buy COB’s interest for an amount equal to thetotal aggregate expenditure incurred by COB, or COB can sell its interest to athird party, or COB can forfeit its interest to BPL.
3) If COB sells to a third party, BPL can requireby
Tag Along Right that the thirdparty must pay BPL on the same terms.
In any event, BPL’s retained percentage share in the TJVduring the
Earning Period will befree carried, such that BPL will not be obligated to contribute to the costsassociated with any of the
EarningObligations under any applicable approved program or budget.
Also, how do you think LG feels after paying $1.10 pershare and agreeing to a first mover deal to negotiate an offtake of cobaltsulphide.. only to find that COB is now talking about producing cobaltconcentrate after releasing its delay causing PFS.
BPL pointed this out onbullet points 5 and 6 of page 1 of this announcement:
https://www.asx.com.au/asxpdf/20180727/pdf/43wtr34q8jhtx3.pdf
"*BPL has also been advised by the TJV Manager that an alternative “cobaltconcentrate only” process is being considered as a potential pathway tocommercialisation. However, the “cobalt concentrate only” process and strategywas not addressed in the PFS."
"With reference to COB’s announcement on 26 July, 2018, BPL notes thatwhichever BFS strategy is ultimately adopted, the timeline to delivery will bemeasured against the TJV contractual obligations and the requirements todemonstrate a bankable project"
Not to mention turning LG's $1.10 into 22 cents ($8m into $1.6m!)
