Business
Serengeti Announces Signing of Binding Agreement with Daewoo International Corp. for Kwanika Project
(via Thenewswire.ca) NR: 2016-02 Vancouver, B.C. / TheNewswire / March 07, 2016:...
About this update from Northwest Copper Corp.
[{"type":"text","content":"Serengeti Announces Signing of Binding Agreement with Daewoo International Corp. for Kwanika Project(via Thenewswire.ca)\n\n \nNR: 2016-02\n\n\n \nVancouver, B.C. / TheNewswire / March 07, 2016: Serengeti Resources Inc. (SIR:TSX-V) is very pleased to report that it has signed a binding agreement with Daewoo Minerals Canada Corporation (\"DMC\"), a Canadian subsidiary of Daewoo International Corp, one of South Korea's leading trading corporations, whereby Daewoo may earn up to a 35% interest in Serengeti's Kwanika copper-gold project by providing funding of C$8.2 million. The transaction has been approved by Daewoo's board of directors and by the relevant government authorities. Serengeti expects to be in receipt of funds within 30 days at which point work on the project will be renewed.\n\n \n \nThe principal business terms of the arrangement are as follows:\n\n \n \n\n\n-DMC will earn an initial 5% interest in the Kwanika project, which includes Kwanika, Kwanika East-Smoke, Germansen, Valleau and Rottacker properties, by funding a firm C$1.2 million in expenditures in the first year, of which $0.8 million will be for project expenditures and $0.4 million as an operator's fee to Serengeti. Work on the project in 2016 will include a re-evaluation of the previously completed resource estimate and scoping level PEA study for the project as well as testing of a number of high quality exploration targets in the immediate deposit area in a 2200 meter drill program scheduled for the 2016 field season.\n\n\n\n \n \n\n\n-DMC is granted the right to earn an additional 30% interest in Kwanika by funding an additional C$7 million in project expenditures over the subsequent two years for aggregate expenditures of C$8.2 million over three years to earn an aggregate 35% project interest. Serengeti will remain as project operator so long as it maintains a majority interest and will be entitled to charge a 10% operator's fee on expenditures beyond the initial $1.2 million investment by DMC.\n\n\n\n \n \nOther terms of the agreement include: \n\n \n \n\n\n-Serengeti, in addition to maintaining its project interest, would be granted a 1% NSR royalty if its project interest is diluted below 50% and an additional 0.5% NSR royalty if its interest is diluted below 331/3%, subject to partial buyback provisions to DMC. \n\n\n\n-DMC to have certain conce...