Duluth Metals Ltd DULMF

And the News Is!!!!!!!!!!!

[marpincan]

Duluth Metals Assumes Control and Operatorship of the Twin Metals Minnesota Project

03 Jul 2014 10:00 ET

CNW Group -- Antofagasta has delivered the "25% Option Termination Notice" to Duluth Metals as provided for under Section 6.4 of the Second Amended and Restated Participation and Limited Liability Agreement which effectively terminates Antofagasta's right to purchase an additional 25% equity interest in Twin Metals Minnesota LLC ("TMM") based upon an evaluation formula arising from the Bankable Feasibility Study -- The project has now moved into the "40/60 phase" whereby Duluth maintains its 60% ownership of TMM and Antofagasta owns 40% -- As a result, Duluth Metals assumes immediate control and operator status of the TMM Project -- In addition, this notice provides Duluth Metals a contractual buy-back right on the Antofagasta 40% equity position in the next 180 days for a price equal to Antofagasta's sunk costs (currently estimated to be approximately US$220m) plus approximately US$10m currently outstanding under the bridge loan facility -- If the buy-back right is not exercised, Duluth Metals is required to repay the bridge loan (plus accrued and unpaid interest), at its option, in either cash or Duluth shares -- Furthermore governance changes take effect with Duluth Metals having three members and Antofagasta having two members on both the TMM Board of Directors and the TMM Technical Committee -- Highlights of the AMEC NI 43-101 Pre-Feasibility Technical Report will be published by the end of July