Wow - just took something very interesting away from the terms of the Lady Jenny Plant
"Cobalt X has right to negotiate to acquire certain fixed assets held by Corella Valley Corporation Pty Ltd [ACN 009 827 678] which together compromise a vat leech processing plant located in the vicinity of Mt. Isa, Queensland for a value to be agreed by negotiation in good faith but in any case not exceeding $1 million payable (through a combination of cash or, at the election of Cobalt X, shares of any listed entity to which the benefit of the right is assigned) on a progressive basis. The indicative commercial terms, which are subject to formalisation, provide for the majority of the consideration to be paid subject to achievement of processing milestones."
Milestones -
o The Company announcing to ASX an Inferred Mineral Resource in accordance with the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition) (JORC Code) (including cumulative production) of not less than 6,000 tonnes of material at a minimum grade of 0.6% Cobalt on the Mt Stockpile Cobalt Project prior to the date which is 12 months from grant of the mining licence for application MLA 100115 (Milestone 1). Further details regarding the Mt Cobalt Stockpile Project are set out below.
o The Company announcing to ASX that the first ore has been processed at the Lady Jenny processing plant (which shall necessarily require that the Company has entered into and completed a binding formal agreement to acquire the rights to Lady Jenny processing plant) provided that announcement must be made prior to 20 February 20
I was expecting a CR after/if the Lady Jenny Plant was formalised or some more dilution. But it would seem the plant will be at very little cost to us until the the 2 above milestones are met, which in any case we will be at least 5-10 bags higher. Not a bad deal at all. Lets see if they can pull it off.
CHK Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
(20min delay)