RE:SETUP TRUST The premium class would be if CKG would be able to get a licensor for the mining of sulphide ore in the gold sector.
The Alderley Deal conditions are decisive for the development path:
Under the terms of the Agreement, Chesapeake will issue 10 million common shares ("Common Shares") to the shareholders of Alderley (the "Alderley Shareholders") resulting in the Alderley Shareholders holding approximately 14.2% of the outstanding common shares of the Company on a fully diluted basis.
The Alderley Shares will be issued into escrow with release based on time and milestone conditions over 7 years as follows:
a. 5% released on each of the first four anniversaries of closing;
b. 10% released on the earlier of (a) date of a positive feasibility study and (b) the fifth anniversary of Closing
c. 30% released on the earlier of (a) duly certified commencement of construction of a mine and (b) the sixth anniversary of Closing; d. 40% released on the earlier of (a) duly certified commencement of commercial production and (b) the seventh anniversary of closing.
These “bind” panga to Chesa for at least 7 years. Panga's clear plan is to bring Metates into production within 7 years. The conditions are crucial for an increase in LT shareholder value. It's about 30m CAD of own investment for the CEO and shows his conviction to rock metates.
peter