SANTIAGO, Chile, Jan. 15, 2020 (GLOBE NEWSWIRE) -- Minera Tamidak Limitada (“Tamidak”), a private Chilean company owned by David Thomson and his family, is pleased to announce that on October 17, 2019, it entered into a non-binding term sheet (the “Term Sheet”) with FQM Exploration (Chile) S.A. (“FQM”) in order to explore Tamidak’s 3,121 hectare Pimentón project in Chile (the “Pimentón Project”) by way of an option to joint venture agreement (the “Definitive Agreement”).
The Term Sheet contemplates that the Definitive Agreement will provide that during the 12-month period following its execution, subject to permitting, FQM will proceed with a 3D deep penetrating geophysical survey of the Pimentón Project, upon the completion of which FQM will have the right but not an obligation to continue to earn a 49% equity interest in a joint venture company to be incorporated by Tamidak and FQM.
After the completion of the 3D survey, FQM will, among other things and subject to certain conditions (including termination rights), (i) work towards completing a resource report concerning the Pimentón properties in accordance with reporting standards set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators; and (ii) complete an in-house feasibility study sufficient to lead to a decision to mine, in each case at the expense of FQM. If such 43-101 report is timely completed and other condition are met, FQM may elect to form the joint venture company (49% FQM 51% Tamidak) upon payment to Tamidak of US$5 million. If FQM timely completes such feasibility study, and upon payment to Tamidak of an additional US$5 million, FQM will increase its equity interest in the JV Company to up to 70%.
If a decision to mine is made, Tamidak may elect to fund a 30% interest in the joint venture company to develop the mine, dilute its equity in accordance with an industry standard formula, or request that FQM fund capital contributions (for additional equity).
Each party will have a right of first refusal over the other party’s direct or indirect interests in any joint venture company formed.
The foregoing is a summary only and subject in its entirety to the Term Sheet. Finalization of the Definitive Agreement will be subject to due corporate and legal process of both parties. There can be no guarantee that the parties will enter into such Definitive Agreement, or that if such Definitive Agreement is entered into, any obligation or event contemplated in the Definitive Agreement will be completed or that production, revenue or profitability from the Pimentón Project will be achieved.
For further information, please contact:
Ian D. Thomson