NGEx Resources Inc. has acquired the 40% interest in the Argentinian-based Josemaría project previously held by its partner Japan Oil, Gas, and Metals National Corp. (JOGMEC).
Pursuant to the terms of the agreement, the consideration is payable in three installments: US$3 million payable immediately, US$5 million upon a development decision being made, and US$13 million upon the commencement of commercial production from the property for total cash consideration of US$21 million.
In addition, the agreement grants JOGMEC an option to purchase up to 40% of the material produced from any mine on the property based on the prevailing market price for the material. As a result of entering into the agreement, NGEx now holds a 100% interest in the Josemaría project.
Commenting on the transaction, Wojtek Wodzicki, President and CEO of NGEx, remarked: "We are very pleased to increase our interest in Josemaría and are excited about the development flexibility that comes with full ownership. We would like to thank JOGMEC for their support through many years of successful exploration, and look forward to opportunities to work with them again in the future. It has been an excellent partnership."
Read the article online at: https://www.globalminingreview.com/finance-business/13112017/ngex-acquires-jogmecs-stake-in-josemara-project/