Bligh Resources' (ASX:BGH) 71.9% owned subsidiary SR Mining has signed a Binding Term Sheet with Terrain Minerals (ASX:TMX) in relation to the Bundarra Tenement Sales Agreement and The Inter Creditors Deed.
All parties are now working towards a final settlement for the 28 November 2014, with relevant legal documentation being drafted by Bligh.
This is a default settlement and has been agreed to by all parties so to avoid SRM being put into administration.
SRM and Bligh have settled their Royalty obligations with Terrain in exchange for immediate Return of Tenement M37/54 Great Western and all relating data; cash consideration of $165,000 plus GST at settlement, and 4.4 million Bligh shares with no escrow.
Bligh will give Terrain a Put Option over 4 million shares with a $0.05 strike price and an expiry of 14 months, starting from the 28th Nov 2014.
Terrain has agreed not to exercise the Put Option for the first 12 months and can only exercise the option in months 13) and 14.
All parties are to release each other of all contractual obligations and any future claims relating to the TSA, Inter Creditor Deed or other related agreements to this transaction once all obligations have been fulfilled.
