Aurcana silver Corp ownership structure On May 8, 2014, Fortune Revenue obtained a 12% interest in the Project and operating authority for the mine, mill and surface operations via its wholly owned subsidiary FRSM. On October 1, 2014, FRSM acquired the balance of 100% ownership of the mine through an asset purchase agreement supported by senior secured financing (the “PFA”) from Lascaux Resource Capital Fund I LP (LRC) via LRC-FRSM, LLC (LRC-FRSM). FML was the guarantor on the PFA. After default on the PFA, on July 17, 2015 FML and LRC-FRSM, LLC entered a Master Restructuring Agreement. As part of the MRA, 100% ownership of FRSM transferred to LRC-FRSM II, LLC, also held 100% by LRC. On July 21, 2015, FRSM changed its name to OSMI. OSMI currently owns and operates the site.
On July 27, 2018, LRC-FRSM and LRC-FRSM II (collectively, “LRC Group”) entered into a Letter of Intent to sell, respectively, the PFA and 100% of OSMI to Aurcana Corporation (“Aurcana”) in exchange for the issuance of common shares of Aurcana to the LRC Group (the “Transaction”). Following the Transaction, including shares issued pursuant to an equipment purchase agreement for the benefit of Aurcana but prior to any shares issued as a result of an equity financing related to the Transaction, the LRC Group will own approximately 75% of Aurcana and Aurcana will own 100% of OSMI on a debt free basis, including 100% of the shares of common stock of OSMI and the PFA. The completion of the Transaction remains subject to the fulfillment of certain conditions, including the execution of a definitive binding agreement in respect of the Transaction, completion of due diligence, and receipt of shareholder and regulatory approvals.
Just a question for clarity....Question: if LRC group owns 75% of Aurcana, does this mean Shareholders are in for the remaining 25% while shareholders are funding the build out of the mine? Does LRC group stand to benefit from split in Revenues on their holdings 73% after the 2% Smelter Royalty and other shareholders at 23%after the 2%Smelter Royalties?