The Good, The Bad, & The UglyOK, we received a few juicy tidbits yesterday. I'm still in shock. I now have more questions than before.
1. How is RBYC paying for all of this? According to a 1/12 submitted filing, they've raised $1.242 million thus far out of a $3.0 million offered financing. They had to pay DLKM $1.5 million within 12 months after the Mkuvia agreement. Did they pay this or not? Now they have to pay BM for the ML & Equipment.
2. Why did BM sell 95% of this "hot" property for such a piddling sum (comparatively speaking) if he already had a camp, ML, and equipment to start mining? If he was that enchanted by this prospect (how many of you remember that fateful telephone conference?) and relatively close to pulling ore out of the ground (which supposedly holds millions of ounces), wouldn't he have just started mining himself or reverse merged his private company into a CPC and made many more paper millions and still owned the property?
3. We're assuming DLKM will possibly benefit from this in two ways: appreciation in the stock price of RBYC (if we still own those 4,000,000 shares), and the regional ESIS which might be able to be applied to all of Mkuvia. The problem is, RBYC will probably start mining BM's property before DLKM's since everything is in place. I'm seeing a serious delay in developing our property. Was this really a three-way agreement or did Slavik betray DLKM because he feared losing our portion of Mkuvia to Mengi?
The soap opera continues..................................stay tuned!
Pursuant to the terms of the Agreement, Ruby Creek will earn a seventy percent (70%) interest in 125 square kilometers of the 380 square kilometer Mkuvia Gold Project by making payments totaling $3,000,000 over three years. The Agreement provides that Ruby Creek will make payments to Douglas Lake of $100,000 and $150,000 within 5 and 15 business days of signing, respectively. On confirmation of a satisfactory Due Diligence, Ruby Creek will make an additional $100,000 payment and both parties will move to closing. Due Diligence is expected to take 90 days, subject to rainy season conditions. Closing is expected to occur shortly after the 90 day due diligence period by Ruby Creek. On the day of the closing and receipt of the first mining license, Ruby Creek will make another payment of $400,000 to Douglas Lake for a total of $750,000 in payments from the signing of the agreement to the closing. Ruby Creek will also pay an additional $750,000 payment for a total of $1,500,000 within 12 months of closing. Additionally, the Agreement provides that within 12 months of closing, Ruby Creek has the option to increase its interest to 75 percent of the 125 square kilometers by making an additional $1,000,000 payment to Douglas Lake. Ruby Creek will make additional payments of $750,000 each within 24 and 36 months of the closing. In all cases, the original owner of the prospecting licenses, Mr. Mkuvia Maita retains a 3 percent Net Smelter Royalty as per the Joint Venture Agreement between Mr. Maita and Douglas Lake.