24/2/15 "Hermes Sale Agreement Alchemy has entered into a Sale...

24/2/15

"Hermes Sale Agreement

Alchemy has entered into a Sale and Purchase Agreement with Northern Star whereby the tenement containing the Hermes gold resource and adjacent tenements (Figure 1) are acquired by Northern Star on the following terms:
1. A purchase price of $1,450,000 for the Hermes tenements and mining information.
2. A royalty of 1% of Net Smelter Return payable on refined gold recovered from the Hermes tenements in excess of 70,000 ounces and up to 90,000 ounces.
3. A placement of 33.33M ordinary fully paid Alchemy shares to Northern Star at a subscription price of $0.015 each to raise $500,000.
...
" Farm-in and Joint Venture Agreement Key terms of the farm-in and joint venture agreement include:

1. Northern Star to spend a minimum of $1,200,000 on exploration expenditure (“Earn-in Expenditure”) over a period of three years on the gold prospective tenements (“Joint Venture Area”) (Figure 1).
Northern Star must fund a minimum $400,000 on exploration expenditure in the first year, after which it may withdraw, at any time. Upon spending the Earn-in Expenditure within three years, Northern Star will be entitled to:
a. an 80% interest in the Joint Venture Area for the tenements held 100% by Alchemy; and
b. a 70% interest in the Joint Venture Area for five tenements, E52/1668, E52/1678, E52/1730, P52/1195 and E52/1196, whereby Northern Star would hold 70%, Alchemy 10% and Jackson Minerals Pty Ltd (“Jackson”) would maintain its 20% interest free-carried to a decision to mine.

2. If the Earn-In Expenditure is not incurred during the period, the agreement will terminate and Northern Star will not earn any interest in the Joint Venture Area.

Btw 3 is missing - mistake in numbering imo - no worries

4. Upon Northern Star fulfilling the Earn-In Expenditure, Alchemy’s interest will be carried on an interest-free deferred basis to production, with Alchemy to repay Northern Star the deferred amount at the rate of 50% of its share of free cash flow from production following commencement of mining.

5. If Jackson elects not to contribute to Mining Operations, then Jackson must sell their interest or convert to a $10 per recovered ounce of gold royalty. If Jackson elects to sell any part of its interest, then Alchemy and Northern Star will be entitled to purchase 50% each of the portion being sold. '

Work that out Chico and Pfuzzy! I'm having a wee rest.

Nice interest today, and no SM either - have been away!

My Nabtrade info says that the real value = SP of 3.2c

Given that and the FA, this co is undervalued - gold with NST and copper and other base metals with IGO and not that many shares on issue etc

Where's that alarm to wake people up?