Farm In OptionAnyone make sense of this ? Seems like a fairly generous deal with renaissance Oil. What impact would it have on RECO.V value if they end up making a major oil strike...
From Recon Africa Investor Presentation :
ReconAfrica holds a 100% working interest in all petroleum rights from surface to basement Subject to 50% Farm-in option (Botswana)
From Renaissance Oil web site :
The Option Agreement provides Renaissance with the option to acquire a 50% working interest in the 2.45 million acre Licence, exercisable at any time within 36 months upon: (i) payment of C$1 million, if exercised within 18 months, or C$1.5 million if exercised after 18 months and (ii) the approval of the Botswana Department of Mines and Ministry of Mineral Resources, Green Technology and Energy Security.