28/9/17 Binding Mining agreement between Syrah and Mozambique...

28/9/17 Binding Mining agreement between Syrah and Mozambique Government
And this includes

Key Commercial Terms•

MiningAgreement covers the mining ofboth graphite and vanadium and will be valid until 2038.•

 

The mining rights for the Balama Operationwill be grandfathered under the provisionsof the Mining and Taxation Lawsin force in 2013 when theMiningConcessionwas issued.•Fiscal Regime

 

:•3% production tax (ie sales royalty) payablequarterly based on the value of salesproduct1.•32%corporate tax rate, assessed annually with three advance payments on account (based on 80% of the prior year corporateincome tax liability) due inMay, July and September of the respective tax year

 

.•Application of Mega Projects Law:•5% non-dilutingfree carried equity interest inTwiggto be made available to aGovernment ofMozambiqueentity

 

.•One off obligation to offer at market valueup to 10% of the equity of Twiggto investors on the Mozambique stock exchange within 5 yearsfrom the commencement ofcommercial production.

 

•Sharing of extraordinary direct benefits where the Balama Operationgeneratesannually, for three consecutiveyears, after-tax free cashflowsexceeding 2.54 times the cumulative historiccapital employed onthe BalamaOperationwith half of anybenefit above the baselinereturn shared with the Governmentof Mozambique and the other half retained by the Company for investment in Mozambique