Oct 27, 2010 (ABN Newswire) - Victory West Moly Limited is pleased to announce the execution of a binding Memorandum of Agreement ("MOA") with China Guangshou Group Corp ("CGGC") that will fully fund VWM's Malala Molybdenum Project to large scale production.
Under the agreement, which marks the completion of a comprehensive due diligence process, CGGC will acquire a 65 per cent interest in the Project in consideration for sole funding 100 per cent of all expenditure to large scale Production. VWM will retain a "free carried" interest of 27.5 per cent in the Project through its related parties.
CGGC will also pay a US$1 million commitment fee (to be paid in 2 tranches of US$500,000).
Under the terms of the MOA, a number of key exploration, development and production milestones are required to be met by CGGC.
- Exploration - A minimum of 10,000 metres drilling to be reviewed by a geological consulting group of international standard. Definition of a suitable 43-101 / JORC resource that is capable of commercial production.
- Development - Development and construction of the Project for commercial production including mine development, processing plant and associated infrastructure
- Early Production - Delivery of early production opportunities from high grade mineralization identified during exploration within 24 months
- Large Scale Production - Subject to a total resource of no less than 150 million tons at 840ppm Mo CGGC will commence large scale production (open pit) by 2016.
Source：au.finance.yahoo.com