RE: Noront Clarifies Position on Windfall Lake
NOT/MAO...grasping at straws....EAG will use the PFS to determine a mineral resource estimate as part of the notice to "commit to cause the commence commercial production "..the NOTICE will fulfill section (ii) of the Agreement.
"commit to cause the commencement of commercial production" AND for the time being that is all they have to do.
possibly NOT is arguing that if EAG never completes a BFS or takes the deposit to production then they still have the right to a buy back provision however they failed to state that EAG has 3 years to do a BFS or go into production !
...MaxT
Under the terms of the Option Agreement, Eagle Hill must deliver either (i) a bankable feasibility study providing for a minimum internal rate of return of 15% on the Project (the "BFS"), or (ii) commit to cause the commencement of commercial production from the Project, within one year of earning its 75% interest, which occurred on April 20, 2012. If Eagle Hill does not complete a BFS or take the project to production, then Noront will have the option to purchase back the 75% of the Project from Eagle Hill for the lesser of (i) an amount equal to the expenses incurred by Eagle Hill and (ii) $6.0 million (the "Buy-back Provisions"), The delivery of the PFS does not satisfy the above requirements and as such, Noront will continue to retain its rights under the Option Agreement, including the Buy-Back Provisions, subject to the terms and conditions of the purchase and sale agreement between Noront and Maudore Minerals Ltd. announced on December 5, 2012 (the "Noront - Maudore Agreement").
Read more at
https://www.stockhouse.com/bullboards/messagedetail.aspx?s=EAG&t=LIST&m=31935537&l=0&pd=2&r=0#RLxlCWEUwGH5piYT.99