Noront Clarifies Position From Noronts news release on Dec20
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").
It seems that EAG is wasting its time on the PFS and actually needs a BFS, as for option (ii) commit to cause the commencement of commercial production. From the agreement posted on Sedar; (sorry can't copy it) Eag needs to have a crusher processing ore for sale at 70% rated capacity for at least 30 days.
This is how they defined "commencement of commercial production" and its just not giving notice of the intent to commence production. i think EAG is behind the ball in fulfilling their commitments ????? Am I missing something in my interpretation ?????