Business
Memorandum of Agreement Signed with TVI Resource Development (Phils.) Inc.
Not for release to US wire services or distribution in the United States Announcement to the...
About this update from Rtg Mining, Inc.
[{"type":"text","content":"Memorandum of Agreement Signed with TVI Resource Development (Phils.) Inc.Not for release to US wire services or distribution in the United StatesAnnouncement to the Toronto Stock Exchange and Australian Securities ExchangeSUBIACO, WESTERN AUSTRALIA / ACCESSWIRE / May 22, 2023 / The Board of RTG Mining Inc. (\"RTG\", or the \"Company\") (TSX:RTG)(ASX:RTG) is pleased to announce that a comprehensive settlement of all outstanding issues with the Villar Family controlled Sage Capital and TVI Resource Development (Phils.) Inc. (\"TVIRD\") has been reached and a binding Memorandum of Agreement signed. On execution of the final documents, expected in the next month, all litigation that RTG had launched will be withdrawn as part of an agreed restructuring of the Mabilo Project.The Villar Family is one of the most prominent families in the Philippines and RTG is pleased to partner with them in the development of the Mabilo Project, which is a significant mining project for the country.The key terms of the agreement for RTG include the following:RTG (through SRM Gold Limited) will retain a 40% interest in Mt. Labo Exploration and Development Corporation (\"Mt. Labo\") with the project also developed by Mt. Labo, in line with Philippine regulatory requirements, with Sage Capital (which is owned by TVIRD) holding the remaining 60%;RTG will have a 2% net smelter royalty (\"NSR\");RTG's debt together with interest, currently in the order of US$27M (subject to audit) will be repaid out of the proceeds of Stage 1 of the project, the Direct Shipping Operation subject to customary requirements to address liquidity and ongoing operations of Mt. Labo;Funding arrangements for the project as between the major shareholders of Mt. Labo have been successfully renegotiated, (relieving RTG of a sole funding obligation) and replaced with a pro-rata funding obligation, together with a disproportionate funding obligation of Sage Capital, as set out below;With debt repayments in full and the NSR, RTG will be entitled to approximately 57% of the proceeds of Stage 1, the Direct Shipping Operation;RTG will be entitled to 40% of the operating cashflow of the project, together with the 2% NSR and repayment of its debt, which is currently in the order of US$27M;The first US$5M of expenditure for Mt. Labo (or 12 months of expenditure, whichever occurs the earlier),...