There are various contractual safeguards against major undertakings that would outsource assets that can be integrated into joint venture and farm agreements. On the other side of the fence, the deal needs to be carefully crafted in order to provide sufficient flexibility to the farm-in party, which may be grappling with funding risks/funding uncertainties. If a major mining company has been abandoned by part of the farm and is unable to terminate the agreement under the contract, the mining company would run the risk that the rental houses would fall into disrepair and the opportunity to obtain bids from other potential joint venture partners would be denied. If Newcrest decides to exercise the Earn-in option, it will pay $500,000 in cash to GFG and will be entitled to earn 49% of the project over a four-year period by issuing an additional $14.0 million with an annual exploration cost of at least $1.0 million. 24, 2020 (GLOBE NEWSWIRE) – Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF («Calibre» or «Company») is pleased to announce: that the Company and Rio Tinto Exploration («Rio Tinto») entered into an option agreement (the «Earn-in» Agreement) on February 23, 2020, allowing Rio Tinto to acquire a stake of up to 75% in calibre`s 100% of Borosi projects in northeastern Nicaragua. The Borosi projects house both gold-silver and copper-gold resources in two areas, as well as several less explored copper-gold school bags, low-sulphide gold-silver epithermal systems, and low-tonnage porphyry copper-gold targets. When negotiating/concluding a contractual agreement with an agricultural-in party, the world can be promised to the major mining companies, but the reality can be very different, especially in a cyclical sector like the mining industry, where raising capital can have many challenges. In addition, the Company and Rio Tinto have entered into a Strategic Exploration Alliance Agreement («Alliance Agreement») under which we will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper-gold porphyry, scarn and epithermal precious metals systems. As with any joint venture agreement, it is necessary to carefully evaluate, during the negotiation phase, all possible outcomes (the «what if?»), whether on the side of the «Farm-in/Earn-in» part, or the main mining company (e.g.B.
of the owner of the project / asset that the farm-in party wants). Certain statements in this press release contain forward-looking information (within the meaning of Canadian securities legislation), including, but not limited to, statements about planned exploration activities and the expected date of receipt of results. . . .