MINING SERVICE AGREEMENT (MSA) BLUE CAP MINING PTY LTD
Alt Resources has executed a Binding Term Sheet with Blue Cap Mining Pty Ltd (Blue Cap) for the provision of Mining Services Agreement (MSA) at the Tim’s Find project. Under the provisions contained in the MSA Term Sheet, Blue Cap will provide mining, transport, processing, drill and blast and associated mining services to the Company.
The Terms and Conditions are summarised as follows;
• Blue Cap to fund mining operation via a $1.5 million Working Capital Facility (WCF) which will continue until ore sales allow full payment of all invoices; • The WCF is to be fully repaid within 4 months from first drawdown, subject to a force majeure clause; • Net Profit generated by Project will be shared as 34% to the Contractor and 65% to the Principal; • Blue Cap retains the right to subscribe to 20 Million fully paid ordinary Shares in the Company being five hundred thousand (500,000) dollars at a deemed issue price of $0.025 utilising the Company’s Listing Rule 7.1 placement capacity with the Shares to have a voluntary escrow period of twelve (12) months from the date of issue. At the election of the Contractor, the issue of shares will be in lieu of cash payment against the MSA cost; • The Contractors right to subscribe for shares under this agreement expires one hundred and eighty (180) days from commencement of the MSA operations; • The Contractor will engage and appoint the sub-contractors for ore haulage and processing treatment. Any appointment is subject to the approval of the Principal; • The Security Deed for the Contractor to be granted a first ranking Security over the ore extracted from Tim’s Find pit and the gold produced from the processing of the ore extracted from Tim’s Find pit; and • Establishment fee $10,000 upon document execution.
The formal documentation is currently being prepared for execution by the Companies which is anticipated to be finalised in the near future.
ARS Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
