Business
Agreement
Agreement.
About this update from Aterian Plc
[{"type":"text","content":"\n \nRNS Number : 8862U Equatorial Mining & Exploration PLC 17 July 2018 \n\n17 July 2018\n \nEquatorial Mining & Exploration Plc (\"EME\" or the \"Company\")\n \nInvestment Agreement with ARQ Minerals (Pty) Limited (\"ARQ\")\n \n \nFurther to the announcement of 1st June 2018 which referred to a Heads of Terms with ARQ, EME is delighted to announce the completion of an Investment Agreement which formalises a commitment to work together in Nigeria in the production and commercialisation of EME's interests. \n \nARQ will partner with EME Mine Nigeria Limited (the Company's wholly owned subsidiary) (\"EMEMine\") to manage the day to day running of excavation and mining activities at the St Leonard Mine in Kogi State. The origination and nature of the St Leonard Mine was disclosed in announcements last year and to-date the Company has been successful with its opening of the pit and delivery of trial amounts of coal to EME's customer. The initial investment provided by ARQ will take the Company into immediate commercial production.\n \nThe terms of the Investment Agreement are summarised as follows:\n \nARQ, having made an initial investment of £50,000 in return for 500 million new ordinary shares, under the Heads of Terms, will invest a further £50,000 in return for a second issue of 500 million new ordinary shares. In return, on receipt of this second issue, ARQ will increase its ownership of EMEMine from 25% to 50%.\n \nARQ will also be issued a total 1000 million warrants to subscribe for ordinary shares at 0.02p per share.\n \nUnder an earn-in element, ARQ will commit to producing a minimum 40,000 tonnes as quickly as possible. For every 1000 tonnes above this quantity ARQ will earn an additional 0.625% ownership of EMEMine up to a maximum ownership of 75%.\n \nThe profits from production will be shared between EME and ARQ in proportion to their equity interest in EMEMine following the payment of 10% of Gross Profit each month to both ARQ and EME as consultancy fees. In the case of EME, this will provide the Company with a monthly income stream.\n \nNicholas Nelson, Executive Chairman, Equatorial Mining & Exploration Plc, commented:\n\"ARQ is a significant coal mining company in South Africa and joins us with the common object...