Research shows that whether a legal process is binding or nonbinding makes a significant difference. In contract law, nonbinding agreements are generally used in the form of letters of intent or memorandums of understanding. Their purpose is to clarify an existing or proposed legal arrangement without holding either party responsible for the text of the document.
Basically a Non Binding agreement is not worth the paper it is written on as neither party are bound by any part of the agreement.
The Non Binding MOU does seem to point out that the Felicitas and Fortuna resources are marginal at best and with approvals for the projects facing an up hill battle in Morangup, Wundowie and Wooroloo it is a good reason to off load them.
Why else would BRL be so keen to part with their 100% owned Fortuna resource and a 30% stake in the so called Flag ship Felicitas resource for a mere $6,000,000 change over figure?
If Yangkuang are smart they would make any agreement with BRL subject to formal approvals to mine with the EPA - DER and the DMP, before handing over another $6,000,000 for a couple of projects that are not going anywhere, but that will of course be up to them.
BAU Price at posting:
7.7¢ Sentiment: None Disclosure: Not Held
