RE: RE: RE: Murky Mensplus
The back-in right between MUX and TNR deals with costs of expenditures. The deal is better than the one Xstrata had with MNEAF, see below in bold type – At bottom find TNR & MUX back-in right deal.
Nov 14 2007 – Minera Andes (MNEAF) MD&A
Option Agreement on Los Azules
Minera Andes and its subsidiary company Minera Andes S.A. (“MASA”) and Xstrata Copper have contributed their respective properties into the Option Agreement. Under the Option Agreement, MASA has the right to earn a 100% interest in Xstrata Copper’s property by spending at least US$1.0 million on the property by November 2010, making payments to keep the property in good standing and producing a preliminary economic assessment (to NI 43-101 standards). If in the opinion of Xstrata Copper, the preliminary assessment shows the potential to economically produce 100,000 tonnes (200 million pounds) of contained copper per year for 10 years or more then Xstrata Copper will have a right to earn a 51% interest in the combined properties (“the Back-in Right”). To satisfy the conditions of the Back-in Right, Xstrata Copper must assume control and responsibility for the combined properties, make a cash payment to Minera Andes of three times MASA’s expenditures incurred on the combined properties after the 25th of November 2005 and complete a bankable feasibility study within five years of its election to exercise the Back-in Right. In the event that the preliminary assessment does not, in Xstrata Copper’s opinion, meet the criterion contemplated above, Xstrata Copper’s interest would be limited to a right of first refusal on a sale of the combined properties, or any part thereof. All lands that make up the combined properties’ mineral applications are subject to a provincial mouth of mine royalty of between zero and 3%. This royalty will be negotiated with the province of San Juan as the project advances.
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003985
--------------------------------------------------------------------------------------------------------
TNR''s Back-In Right with MUX
TNR will retain their Back-in Right for up to 25% of the equity in certain claims comprising the northern portions of Los Azules. These northern claims currently represent approximately 62% of the known resource at Los Azules. This 25% interest, when taken in the context of the whole property, would be currently equivalent to approximately a 15% interest of the total estimated resources at Los Azules (Canadian NI 43-101). This interest could increase or decrease depending on the location and size of future exploration results. The Back-in Right is exercisable after the completion of a bankable feasibility study. To exercise TNR must pay two (2) times the expenses attributable to the back-in percentage (ie. paying 2 x 25% all of the costs attributable to the claims comprising the northern portion of the property). Upon backing-in, TNR may elect to continue to participate in the project or be diluted down to a 0.6% NSR on the same claims comprising the northern portion of the project.
https://finance.yahoo.com/news/mcewen-mining-inc-los-azules-183727253.html