"Under the Farm-In Deed, subject to satisfying exploration and expenditure commitments, Lodestone Exploration has the right to earn a 50% interest in all three permits. The Company’s earn-in obligations require it to spend $2 million on exploration on the Permits over a period of three years.
Under the Farm-In Deed, Lodestone Exploration has agreed to issue up to 9 million fully paid ordinary shares to Orbit Capital or a related corporate entity in three tranches. The timing of these issues may depend on the terms of any waiver of Listing Rule 10.13.3 granted by ASX, if one is granted." ____________________________________________________________
50% for only $2 million expenditure on exploration and the issue of only 9 million shares.
9 million shares is almost nothing. Something to consider when comparing with companies such as NSL which will have to issue an additional 3billion shares if their project is to go ahead.
LOD Price at posting:
0.0¢ Sentiment: None Disclosure: Held
