TGS 0.00% 4.9¢ tiger resources limited

re cap of tgs position

  1. 132 Posts.
    Just thought I would post previous contract arrangements regarding kipoi. Interesting to note that for every additional 50000t of copper above 350000t an additional $2.75mil is payable. If kipoi comes in around 1mil tonnes that translates to $35mil. When is this additional expense payable?

    Dated 18th Sept 06

    Kipoi Project (Katanga Province – DRC)
    Since the original announcement on 1 May 2006 for the acquisition of an interest in the Kipoi Copper
    Cobalt project, commercial terms have been varied. Key commercial terms, as they presently stand, are
    noted below:
    Tiger Resources Ltd and its Congolese partner, Groupe Orgaman (“Orgaman”) have formed a joint
    venture to acquire an initial 60% interest in the Kipoi project. Tiger and Orgaman’s interests in the joint
    venture are 85% and 15% respectively.
    The joint venture has exclusive rights to explore the Kipoi project and will earn a 60% interest
    concurrently with the completion of a bankable feasibility study (“BFS”) and the making of the following
    payments:
    (i) USD$10 million within six months after completion of the BFS; and
    (ii) USD$12 million within ten months of the payment referred to in (i) above.
    The BFS is required to be completed, subject to the parties agreeing to any extensions, within 2 years
    after completion of a drilling program on the project. As previously reported by Tiger, the drilling
    program has commenced.
    In the event that the cost of the BFS exceeds US$5 million, then for every one million dollars of
    expenditure in excess of US$5 million, a US$500,000 reduction will be made from the purchase price of
    US$10 million payable by the joint venture and referred to above. The total reduction is limited to
    US$1.5 million.
    In the event that the BFS delineates a copper reserve (measured in accordance with the JORC Code)
    within the Project Area in excess of 350,000 tonnes, the joint venture must pay additional consideration
    equal to US$2.75 million for each additional 50,000 tonnes. In addition to royalties payable to the DRC
    Government, a further royalty obligation exists under contract - 2% of the value of Specified Minerals
    produced from within the Project Area and a further 2% of the net sale proceeds of that production
    The joint venture may also be able to acquire a further 20% interest in the Kipoi project for further
    consideration of US$12 million but there is no certainty that this additional interest will be offered to the
    joint venture.
    As reported in the June quarter activity report, the Company has initiated an RC drill program of 4,000
    metres targeting the Kileba, Judeira, and Kaminafitwe prospects within the project area. Initial results are
    expected to be released shortly. The RC program is now complete, although results are outstanding, and
    the Company is presently making plans for a diamond drill program.
    Given the results to date and the high prospectivity of the project area, the Kipoi Project will be the focus
    of the Company’s activities in the near term and the Company has boosted its infrastructure and technical
    personnel in the DRC to achieve this objective.
    Yours faithfully
 
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