WWI 14.3% 1.2¢ west wits mining limited

what does this mean with the $3million part of, page-2

  1. 494 Posts.
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    I will try - the wording was not particularly user friendly. I think it means that while the title is under WWI's name and not that of the consortium, it can only be mined under contract; so MLI et al will effectively pay WWI for the tonnes of ore they extract whilst the title is still under WWI. Those payments draw down off the $5m security deposit paid on completion of due diligence ie the amount returned to the consortium from WWI if the deal didn't end up going through. So yes we do get paid for any ore extracted.

    There is then a $1m payment 12 months after transfer of title, making a total of $6m.

    As for the $3m component, that is subject to tonnes of ore processed and is paid progressively. No details available on this particular component.

    That's my interpretation of the deal - could be wrong. btw due diligence must surely have been completed by now - where is the announcement!!
 
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