It had been my impression the offer Keith brought in the spring was 60% of the gold revenues to Zhaojin and Core's share would be 40%. When I look at old reports it confirms my impression:
"The right to earn up to 60% interest in Dynasty through the expenditure of US $62 million over a period of 3 years to construct an underground mine and processing plant. It was expected the mine and processing plant would process 2,000 tons per day with Core Gold would retaining 40% following the declaration of commercial production."
The deal reported in this morning's news release tilts the ratio in favor of Core, 40% to the partner, 60% to Core. Quoting from this morning's news release from Core Gold Inc:
The original September 2, 2019 non-binding proposal from the Interested Party had the following key terms (the "Original September Proposal"):
- C$0.225 in cash per Core Gold common share.
- Issuance by Core Gold of a convertible security prior to completion of the transaction for gross proceeds of C$5M which would automatically convert to Core Gold common shares at C$0.225 per share within 60 days of issuance.
- The proceeds from the convertible security would have had a restricted use of proceeds, with C$1M being used for working capital and C$4M being available only for specific debt repayment.
- Creation of a new company ("SpinCo") which would contain all of Core Gold's projects (Zaruma, Portovelo, Copper Duke and Linderos), other than the Dynasty Goldfield Project, and which would be spun-out to Core Gold shareholders but would be unlisted. The Interested Party would have been entitled to one (1) board seat on the board of directors of SpinCo.
- The Interested Party would invest US$10M into the SpinCo for a 19.9% share ownership position.
Creation of a joint venture in respect of mining and processing oxide ore from the Dynasty Goldfield Project with 60% of the profit to SpinCo and 40% of the profit to the Interested Party
Furthermore I see no detail in the news release suggesting that the December offer altered this particular specification here from the September offer.
Can anyone comment on this?
DO NOT TINDER YOUR SHARES TITAN
Revoke Tenders to Titan if you have signed them.