Business
Aston Bay Holdings and Antofagasta Sign MOU to Advance the Storm Copper Project, Aston Bay to Arrange Private Placement
(via Thenewswire.ca) Vancouver, British Columbia / TNW-ACCESSWIRE / June 18 , 2014 / As...
About this update from Aston Bay Holdings Ltd.
[{"type":"text","content":"Aston Bay Holdings and Antofagasta Sign MOU to Advance the Storm Copper Project, Aston Bay to Arrange Private Placement(via Thenewswire.ca)\n \n \nVancouver, British Columbia / TNW-ACCESSWIRE / June 18, 2014 / Aston Bay Holdings Ltd. (TSX-V: BAY) (\"Aston Bay\" or the \"Company\") is very pleased to announce that, further to its release of May 26, 2014 announcing a non-binding term sheet, it has now signed a binding Memorandum of Understanding (\"MOU\") with a wholly-owned subsidiary of Antofagasta plc (\"Antofagasta\") to cooperatively advance the Storm Copper and Seal Zinc projects in the territory of Nunavut (\"Storm\"). The MOU gives Antofagasta the opportunity to earn up to a 70% total interest in Storm, as well as a path to an eventual proposed joint venture.\n\n\n \nThe terms of the MOU are as follows:\n\n\n \n-In Phase I, Antofagasta may spend a minimum of US$10 million in expenditures (inclusive of a private placement (see below)) over a period of six years, beginning on the Effective Date of the MOU, to earn in a 50.1% interest in Storm.\n\n\n \n-Phase II provides that Antofagasta may spend an additional US$6 million over three years and provide a technical report in compliance with National Instrument 43-101 demonstrating an Indicated Resource of at least 15 million tonnes of copper-bearing rock, at a 0.2% copper cut-off, to earn an additional 19.9% interest, for a total 70% interest in Storm. \n\n\n \n-Phase III will immediately follow Phase II and provides that Antofagasta will fund all expenditures including a minimum of US$1 million per year for the period of two years following the completion of a possible Feasibility Study. If Antofagasta elects not to proceed during Phase III, Aston Bay can buy back Antofagasta's interest for 130% of expenditures that Antofagasta has funded to that point. Alternatively, Aston Bay can maintain its 30% interest and take control of the technical committee or board of the operating company by paying to Antofagasta US$1 million.\n\n\n \n-Phase IV will commence two years after the delivery of a possible Feasibility Study, and both Aston Bay and Antofagasta will pay their pro rata shares of expenditures, according to their respective interests in the Storm project.\n\n\n \n\"We are pleased to have attracted a well-respected and technically-driven partner that has a track record of bui...