As I stated in my previous post...The Company has one year from April 20, 2012, to either complete a bankable feasibility study demonstrating a minimum after tax internal rate of return of 15% on the Property or give notice to the Optionor of its commitment to cause the Commencement of Commercial Production from the Property (which notice shall specify the number of tons of proven and probable ore reserves on the property at the time estimated by the Company and the anticipated annual rate of production). If the Company does not deliver the above within the specified time frame the Optionor has the option to purchase back the Company’s 75% interest in the property for the lessor of i) an amount equal to the expenses incurred by the Optionee and ii) $6 million.
Frankly, this is the one thing that has kept me from investing more here....the uncertainty on whether they could meet this deadline. I haven't seen anything that leads me to think they even had a plan to meet the deadline.
This brings up the question....will management be able to meet the criteria as stated in the option agreement? If not, what other options are left?
Will management comment on their expectations on whether they can meet the criteria as stated in the option agreement?
