NINres/BCK agreement.

 

 

Highlights of MIN Res and BCK agreement.

90day cooling of period is over so  it must be all systems go.

Below is a link to the ann of the contract. It  isn’t the contract.

Suggest everyone read it to familiarise themselves to  a somewhat fair agreements.

Lets not overlook the grade of Ore.  Some is 42%Fe (Oh so low)

Market Cap of MIN $2.9bn Todd around  $3bn

 

 

http://doc.irasia.com/listco/hk/brockmanmining/announcement/a180726.pdf

Below are some clausesI Found  agreeable.

Background

BCK is 360Km for coast. MIN Res doesn’t think that’s stranded.

Only stranded thing is FMS bod.  Horse and cart or Steam  trains are no longer used.(save them time and pass mesage on)

I found that MIN’s opinion is that we are experienced in mining and we value your asset and want to develop it with you.

No CR for BCK SH

90% of BCK owned by Hong Kong and Bahama investors.

 

Contract.

 A  number of peripheral companies will be formed to manage the project.

 

BCK receives $10m singing fee.  Project delayed moneys don’t have to be returned.

 

Farm in JV

Farm-in prior to Joint Venture Farm-in: Polaris ( new subsidiary ) shall earn a 50% interest in the Marillana Project by satisfying the following obligations within 6 months of the Unconditional Date (Farm-in Period): (i) expenditure of AUD250,000 on exploration and development of the Marillana Project; (ii) completion of the following to evaluate the economic feasibility of mining minerals on the tenements under the Marillana Project (or such other areas as the parties may agree): (a) Polaris’ process design criteria of the processing plant(s); (b) completion of Polaris’ optimised mine plan study; and (c) completion of a mine site layout that illustrates Polaris’ preferred location for the processing plant(s) on the tenements under the Marillana Project consistent with the optimized mine plan referred to in paragraph (b) above. Satisfaction of Farm-in Obligations: Upon Polaris satisfying the Farm-in Obligations on or before expiry of the Farm-in Period, the Joint Venture shall be established (Farm-in Date). Following the Farm-in Date, the Farm-in Interest will be transferred to Polaris. Failure of Farm-in Obligations: If Polaris fails to satisfy the Farm-in Obligations on or before the expiry of the Farm-in Period, Brockman Iron may by notice to Polaris terminate the FJV Agreement with immediate effect and upon such termination: (i) Polaris will not incur any further liability in respect of the tenements under the Marillana Project; (ii) Polaris will not be entitled to any right, title or interest in the 50% interest in Marillana Project; and (iii) within 7 days following termination, Polaris must provide Brockman Iron with copies of all mining information (if any) generated by Polaris (or its related parties) during the Farm-in Period

 

FMS has to do similar.MIN takes 6 months Tio ongoing.

FMS doesn’t need any “formalor informal agreement with BBIG(which is Tio. Figures or reports are carried fromone board meeting to the other???

 

Development of mine Aud$300M

 

Polaris or a third party subcontractor to carry out the Development Activities. Based on the total estimated cost of the Development Activities which is provided by MRL drawing upon its considerable experience in developing mining projects in Western Australia and considered to be reasonable by the Company, it is agreed that the Joint Venturers will be responsible for funding the Development Activities of the Marillana Project of a maximum of AUD300 million) in total or AUD150 million by each Joint Venturer.

MRL to provide finance

Financing to fund the aforesaid Development Activities for and behalf of the Joint Venturers. Brockman Iron shall repay its share of the Debt Financing over a loan term to be agreed, which will take priority over Brockman Iron’s profits from the Marillana Project.

 

 

Great rail agreement.360Km from port not considered stranded.

A committee of 6 willbe formed . For FMS will it be One with 5 cardboard cut outs. (this coment wasbrought on by current bod)

Rail and Port System: Under the Mine to Ship Logistics Agreement, a subsidiary of MRL will be endeavouring to construct (at its own cost, and not Joint Venturer’s) the Rail and Port System in accordance with the following timeline: (i) construction of the Rail and Port System is to commence on or before 31 December 2019; and (ii) operation of the Rail and Port System is to commence on or before 31 December 2021. Unless extended by the agreement of the parties, if any of the above dates is not met, Brockman Iron may (within 30 days) give notice to Polaris to acquire the whole (but not part) of Polaris’ JV Interest either with an immediate acquisition or a delayed acquisition. If Brockman Iron elects to proceed with an immediate acquisition of Polaris’ interest, it must pay an amount equal to the actual capital costs incurred by Polaris in the period from the Farm-in Date until such BuyOut less any actual profit derived by Polaris from its share of the sale of Products from the Marillana Project as at the date of completion of the Buy-Out. If Brockman Iron elects to proceed with a delayed acquisition, the Joint Venture will continue until Polaris has recovered all its Sunken Capital Costs from the actual profit derived by Polaris from its share of the sale of Products from the Marillana Project. The Company will comply with the applicable requirements under the Listing Rules if and when Brockman Iron elects to proceed with the BuyOut in the event that the above timeline relating to the Rail and Port System is not met. Management Committee: A management committee comprising a total of six representatives shall be established on the Farm-in Date. Each of the Joint Venturers shall appoint 3 representatives. The role of the Management Committee is to make all strategic decisions relating to the conduct of the activities undertaken by the Joint Venture including the consideration and approval of any work programme and budget and to supervise the Manager (as defined below) in the management of the Joint Venture

 

Processing. I thinkboth pay 50-50.

In the Case of FMS.Pointless FMS paying 50% and BBIG 50% because Tod would be paying more viaTIO(NZ)

 

the Joint Venturers and a subsidiary of MRL (as contractor) shall enter into the Process and Loading Agreement based on the principal terms set out in the HOA including: Contractor’s services: The contractor is granted the exclusive right to provide process and loading services to build, own and operate the Marillana Project’s processing (crushing and beneficiation) plants, product stockpiling, management of tailings facility, and reclaiming and loading of products on to trains. Duration: Life of mine, which is estimated to be approximately 20 years

Mineral Resources of iron ore amounting to 1.51 billion tonnes (1,404 million tonnes, grading 42.2% Fe and 102 million tonnes, grading 55.6% Fe),

 

Ore Grade needs highlighting. Way blew FMS. But not a problem to MIN Res.

Distance form coast 360Km verses FMS 160Km.

Mineral Resources ofiron ore amounting to 1.51 billion tonnes (1,404 million tonnes, grading 42.2%Fe and 102 million tonnes, grading 55.6% Fe),

 

Time line from peoplewho know what they are doing, no best described as no B Sheet.

 

Overall, under the FJV Agreement, iron ore from Marillana Project is estimated to be in the global seaborne iron ore market as early as 1 year albeit in smaller quantities from the Unconditional Date by the third quarter of 2019 and on a larger scale by the fourth quarter of 2020

 

PIOP was ready for market around 2011. Current lot still stuffing around.

MIN res 2years.

 

Lets not forget PIOP drilling still open.

GLTA some people get the good contracts.

The contract recompenses BCK for time and $ spent on exploration etc.