Only the 2 parties would know what the agreement says between Backreef and OBL. This agreement was done way before the proposed sale from Backreef to BRU (pending Native Title).
With regard to Joint Venture agreements - I am not a solicitor
But an example would be if say GRK can not get funding for their 20% of costs owing to the operator being OBL for 20% of expenses. GRK would probably have a clause stating that they forgoe their 20% ownership back to OBL. Can they sell their 20%, depends on the agreement. Who knows.
Now I am not party to what is written, but you would expect that OBL are confident in attaining the 100% or else they would not of announced it.
Who knows they could get the other 50% for Nil or strike a deal with backreef. I don't know.
What I do know is OBL have a minimum of 50% of Derby and are the operator. They were looking at farming out 25% to FMG, but it did not happen and OBL announced they are looking at doing a similar deal with an oil and exploration company and are suspended. FMG, BRU and supermajors are interested in this asset. 18 million is a cheap market cap for OBL. DYOR.
OBL Price at posting:
3.4¢ Sentiment: ST Buy Disclosure: Held
