MD&A Excerpts 2
During the year ended September 30, 2012, the Company’s wholly-owned subsidiary, Corriente Argentina S.A. (“CASA”) acquired additional mineral concessions located adjacent, or in close proximity, to Taca Taca. The total cost of these acquisitions was $2,645,613 of which $585,462 was satisfied through the issuance of shares of the Company. 42,169 Lumina common shares were issued during the year ended September 30, 2012 with a further 1,917 common shares ¡ssued in October 2012.Two of the mineral concessions acquired by CASA were acquired as to a 50% interest only. The Company determined that these concessions are jointly controlled assets which are accounted for in accordance with lAS 31 Interests ¡n joint ventures whereby the Company recognizes its share of the jointly controlled assets, any liabilities that have been incurred, any liabilities that have been jointly incurred with the other venture in the joint venture, any income from the joint venture (or share of expenses incurred by the joint venture) and any expenses the Company has incurred in respect of its interest in the jointly controlled asset.The acquisition cost of the jointly controlled mineral concession assets was $296,028. To September 30, 2012, expenditures incurred with respect to the jointly controlled mineral concessions amounted to $46,648. CASA is required to fund its share of certain spending commitments to maintain the jointly controlled mineral concessions in good standing in the following approximate amounts: $372,000 by November 17, 2012 and $326,000 by May 2, 2013. An exploration program, lead by CASA,was initiated on these two mineral concessions in October 2012. Following the completion of ten reverse circulation drill holes totalling 3,695 metres, the exploration program on both these concessions was completed on November 28, 2012. As at the date of this MD&A, all required spending on both of the jointly controlled concessions had been made in order to maintain the concessions in good-standing.Four mineral concessions acquired during the year are subject to a 1.5% NSR (which can be bought out for US$ 1 million perconcession). CASA has a 0.75% NSR obligation with regard to the two jointly controlled mineral concessions (which can bebought out for US$ 0.5 million per concession).
Strategic Review
In June 2012, the Company announced the formation of a special committee of independent board members (the “Special Committee) to evaluate strategic alternatives that had presented themselves to the Company, with a view to enhancing shareholder value. On October 9, 2012, the Company provided an update on the strategic review process, noting that it has had and continues to have transaction discussions with a number of major mining companies and has considered other opportunities for shareholder value creation. The proposed path as announced was to continue to work towards completion of the PEA on Taca Taca which will provide additional technical information and the basis for detailed value discussions with prospective companies interested in acquiring Taca Taca.
So someone approached LCC about a buyout...
They acquired the 50% of the CCD properties as JV partners for minimal cost and have completed the drilling which they are the operators. So LCC is really in control of those surrounding properties and CCD is along for the ride
SB2