As at December 31, 2014, the Company had cash and cash equivalents of $294,559 ($533,748 as at September 30, 2014). Current cash and cash equivalents stand at approximately $150,000

Read more at https://www.stockhouse.com/news/press-releases/2015/02/27/morro-bay-announces-release-of-first-quarter-financial-results#sFr65bWOmJFE4iRd.99



In order for the Company to earn a 51% interest in the project Morro Bay is required to make payment of $750,000 to Riverside by March 31, 2015 (payable in cash or Morro Bay shares at Morro Bay’s election provided that if the value of Morro Bay shares is less than $0.05 such payment must be made in cash).

Upon exercise of the option a joint venture between Morro Bay and Riverside will be formed. That joint venture will see:

  • Morro Bay be appointed as operator of the joint venture;
  • Morro Bay is required to incur Joint Venture Expenditures of $750,000 for each of the first three years (any amounts expended over $750,000 will be credited toward the following years expenditure requirements);
  • Riverside shall have a credit of $100,000 and US$1,250,000 against the first Joint Venture Expenditures incurred by the Joint Venture; and
  • Should the Joint Venture fail to incur Joint Venture Expenditures of at least $750,000 in each of the first three years, Riverside will have to right to acquire 100% of Morro Bay’s Interest by returning to Morro Bay 80% of the common shares issued by Morro Bay to Riverside.

Read more at https://www.stockhouse.com/news/press-releases/2015/02/27/morro-bay-announces-release-of-first-quarter-financial-results#QLBPHqfpZgYBQlkv.99