TSXV:AXM.H - Post by User
Comment by
baystock1on Jun 13, 2011 11:12am
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Post# 18706979
RE: This could have been all ours
RE: This could have been all oursAt the rate Teranga is spending money it appears AXMIN's 20% stake in the JV will soon become reduced to a mere 1.5% NSR. What is that worth, maybe $2-3 million ?
Sounkounkou, Heremakono and Sabodala Licences
On November 3, 2008, the Company concluded a joint venture with SabodalaMining Company SARL, a wholly owned subsidiary of Mineral DepositsLimited (“MDL”) whereby MDL may earn a 51% interest in AXMIN’s whollyowned gold exploration permits, Sonkounkou, Heremakono and Sabodala NWlocated in the Birimian belt of Eastern Senegal.
The terms of the joint venture with MDL include:
- MDL must spend a total of US$2.5 million over three years to earn a 51% interest in each permit, with a minimum expenditure of US$500 in year one, US$800 in year two and US$1.2 million in year three. There is a minimum expenditure of US$800 before it may contemplate withdrawing from the JV.
- Following earn-in, AXMIN may elect to maintain its 49% interest by funding future expenditure on a pro rata basis, or it may elect to dilute further to 20% in return for MDL spending a further US$3.5 million over an additional three year period. At this stage AXMIN may elect to participate or transfer its residual interest to MDL in return for a 1.5% royalty.