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Any form of relationship is subject to mutual agreement. To facilitate this agreement,
TGA wants to lay-out some guidelines for discussions. Subject to the technical
acceptability of the potential of the property as well as findings in the due diligence
visits, discussions with TGA can proceed in defining the relationship of the parties. The
guidelines are defined in page 10, of download
file x-cproj01.doc
These guidelines are as follows:
- The JV partner will buy majority share of the project 60-70%. Some amounts will pay for
TGA expense on the project.
- The JV partner will pay for the drilling, feasibility studies and other activities to
bring the project to Bankable document stage.
- The JV partner will undertake to arrange capital loans required by the project. Equity
portions will be raised proportionately between the JV and TGA. The JV partner, however,
will undertake to loan ABC its contribution to equity. Repayment will come from ABC's
share in operating profits.
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