Ann: Central Tanami Update,NST-TAM.AX, page-22

Hey PbNewby I've been reading your posts. I agree with your analysis. Below is a copy the actual notice to Shareholders that was released regarding the HoA (heads of agreement).

TANAMI GOLD NL
9 February 2015
CENTRAL TANAMI PROJECT
The Board of Tanami Gold NL wishes to advise that, after carefully considering various
options, it has entered into a binding Joint Venture Heads of Agreement with Metals X
Limited regarding Tanami’s Central Tanami Project (“CTP”) in the Northern Territory.
The Joint Venture Heads of Agreement (“the Agreement”) provides that Metals X will, subject
to a number of conditions precedent, forthwith acquire a 25% direct interest in the CTP for
$11m in cash and 4m MLX shares. The Agreement provides that Metals X will fund all
exploration and expenditure, including plant refurbishment, required to progress the CTP
through to commercial production, at which point Metals X will have earned a further 50% of
CTP. Metals X will be the Manager of the Joint Venture at cost.
The Agreement also provides Tanami with a Put Option to sell, at any time after entering into
the Joint Venture until 6 months after commencement of commercial production, its
remaining JV interest, for an amount of $32 million in cash or Metals X shares at Tanami’s
option.
The Agreement is subject to Shareholders’ approval.
Tanami Chairman, Gerard McMahon, said
“The Board believes that the Agreement with Metals X provides the best opportunity for the
Company. Tanami will have the benefit of receiving sufficient cash to pay out existing debts
and will be relieved of all obligations for funding exploration and development to commercial
production but will retain 25% of the Project thus retaining exposure to the upside.
Additionally, Tanami is protected on the downside by the Put Option outlined above.
Metals X is a well funded and well managed group with expert and experienced mining
professionals who have proven themselves in project management and project revivals in
what has been at times a difficult period for resource companies. We believe their
management skills, combined with Metals X’s significant funding, should lead to successful
commercialisation of the CTP for the benefit of all shareholders”.

Gerard McMahon
Chairman

Here is proof that the HoA was exactly what a Heads of Agreement was meant to be: Non-Binding. It may have been binding for MLX if shareholders voted yes but not the other way.