The Conversation (0)
Aston Bay Holdings Ltd. (TSXV:BAY) has entered into a period of exclusive negotiations with a major mining company with a public market capitalization of over US$10 billion. This period will last until the execution of a memorandum of understanding and/or an earn-in agreement or June 30, 2014, whichever is earlier. The exclusivity agreement has been entered into with the intent to move towards a proposed MOU to form a joint venture on the Storm Copper and Seal Zinc projects.
As quoted in the press release:
Under the terms of the Exclusivity Agreement, Aston Bay will provide to the Major all information relevant to the Storm project, and arrange for a site visit and tour of Storm. Aston Bay also agrees not to invite or facilitate any discussions with third parties with respect to Storm and Aston Bay’s assets and shares in general, with certain exceptions. In consideration of Aston Bay entering into the Exclusivity Agreement, the Major will pay to the Company a fee of $50,000 for the Exclusivity Agreement, an amount that will be counted towards the Major’s exploration expenditures should an MOU be completed. The fee is not refundable to the Major in the event an MOU is not completed.
Aston Bay CEO, Benjamin Cox, said:
Aston Bay has been actively seeking a partner to advance the Storm project, and we are excited to have attracted the interest of a major mining company with a track record of successfully developing and operating mines. Our discussions with the Major have advanced to the stage that both parties felt it was appropriate to enter into an Exclusivity Agreement in order to negotiate and document the final terms of the MOU.
Click here to read the Aston Bay Holdings (TSXV:BAY) press release
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