Koreans are in town talkingFrom the MDA and the News
Pursuant to the terms of the joint venture agreement, Palm Clean and Daewon will arrange for financing ("Junior Financing") for CMC before March 30, 2011 and then pay all reasonably estimated exploration costs in order to prepare the Feasibility Report. Palm Clean and Daewon will arrange for financing ("Senior Financing") for CMC within 30 months from the date of the Feasibility Report to obtain all funds required to put the Lucky Ship Property into commercial production. Palm Clean and Daewon will have the option to acquire a 51% interest in CMC upon securing the Junior Financing and a 60% interest in CMC upon securing the Senior Financing. Palm Clean and Daewon agreed to reimburse the Company $3,500,000 once the Junior Financing is completed.
Prior to the Junior Financing, Palm Clean and Daewon agreed to provide a loan of $500,000 to CMC, of which $250,000 was received on April 27, 2009 and $250,000 was received during the three months ended December 31, 2010. This loan was, in turn, loaned to the Company (Note 7).
Pursuant to the joint venture agreement, on November 10, 2009, the Company assigned its interest in the Lucky Ship option set out in the underlying agreement to CMC, which will assume and perform all the obligations of the Company under the Underlying Agreement.