RE: Transfer of Roche Bay project..... That's really interesting that AXI wanted to transfer its 49.9% interest in the Roche Bay project to the joint venture vehicle with XinXing. Unfortunately the 2009 agreement with Roche Bay plc specifically prohibits this, unless Roche Bay plc is compensated:
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"If AEI has not exercised the Property Earn In option or the Buy-Out Option or the Half Buy-Out Option, and should AEI wish to sell, transfer or assign its entire interest in the Mining Property to a non-affiliated third party, Roche Bay Canada shall have the right to require such third party, concurrently with the completion of the transaction, to purchase from Roche Bay Canada its interest in the Mining Property for a price equivalent to the Buy-Out Option payment."
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AXI will not be able to "sell, transfer or assign" its interest until it earns in or buys out all of Roche Bay plc's interest (or XinXing buys out that interest). If anybody has a different reading, let me know.
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Also, both Tuktu and Roche Bay are in the Area of Mutual Interest. Therefore each property is subject to respective earn-in processes. Tuktu will need its own feasibility study and positive production decision to earn in 100% interest.
If AXI were to buy out Roche Bay plc with the $35 million payment, then I believe there would be no more earn-in process for Tuktu. AXI would own it 100% immediately with the buyout.