GREY:OLEPF - Post by User
Post by
hoosier1on Aug 07, 2012 3:50pm
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Post# 20191222
Structure of the Senegalese Co
Structure of the Senegalese Co OJVG had to create a Senegalese company in which the govt got 10% fully carried subject to all of the OJVG getting their initial investment out first. Thus, we are all now diluted 10%... OLE is 39.15% owner in the Sengalese company.
Also OJVG was required to offer up to 25% stake in the new Senegalese company to Senegalese nationals... I did not think this had to occur right away, but it appears this is what parks is talking about...Just means further value dilution for all of us.
Here it is straight from the FinReport, pages 10 & 11
OJVG is in the process of establishing an operating company to undertake the development of the OJVG Project. The operating company will be owned by OJVG as to 90% and by the Government of Sénégal as to 10%. The interest owned by the Government of Sénégal is fully carried, subject to the prior recovery of the funding shareholders of their advances and accrued interest thereon, and the Government of Sénégal is also entitled to a royalty equal to 3% of net smelter returns. Under the terms of the Mining Convention, OJVG is obliged to offer to Sénégalese nationals the right to purchase 25% of such operating company at a price determined by an independent valuator.
h1