RE:RE:RE:RE:RE:New press releaseThanks terarm,
Have a read below, let me know what you think:
ARTICLE 3
SAVIK FORMATION AND CAPITALIZATION
7. Formation of Savik. Upon signing this Agreement, the Parties agree to proceed with the
formation of Savik on the following terms and conditions: 5
a. Before or upon receipt of all necessary shareholder and Exchange approvals, AEI
shall form a wholly-owned subsidiary corporation named, if such name is available,
“Savik Iron Mines Ltd.” in a jurisdiction agreed upon by the parties, taking into
account tax and other benefits, with nominal capital.
b. Definitive Joint Venture Agreement: Both parties shall finalize a definitive joint
venture agreement on the basis of this MOU upon satisfactory due diligence.
c. AEI shall affect the transfer of 100% of its interest in the Iron Ore Mining Assets to
Savik on a tax-free basis (if applicable) including the assignment of all associated
contracts and permits. AEI shall be responsible to ensure that all necessary
documentation is executed to evidence such a transfer and new ownership of the Iron
Ore Mining Assets.
d. Within 10 days from AEI obtaining requisite approvals and the formation of Savik,
whichever is the later, Parkson shall inject Canadian $2 million into Savik’s bank
account as initial equity contribution.
e. Within 10 business days from the transfer of the Iron Ore Mining Assets and
assignment of all relevant contracts and permits to Savik, Parkson shall be deemed to
earn an 80% equity interest in Savik (80% of the outstanding capital shares), in
consideration for the commitment to fund the Projects as defined in this Agreement.
Parkson’s 80% interest shall be held in escrow until such time that, subject to Section
8 herein, the aggregate amount of funds allocated to AEI and/or Savik shall be equal
to 80% of the sum of the following factors:
i. The market value of AEI calculated by multiplying the total outstanding
shares and the weighted average trading prices for the 60 days preceding the
execution of this Agreement plus a 20% premium; and
ii. Corporate debts outlined in Section 9(c)
f. AEI shall retain a 20% equity interest in Savik as free carry until the substantial
completion of the business plan as outlined in Section 9(a) and attainment of First
Commercial Production of the Projects;