VANCOUVER (Yosefardi) – Southern Arc Minerals has amended the sale agreement and closed the sale of its interest in the Taliwang project.
Pursuant to the terms of the agreement, Southern Arc’s wholly-owned subsidiary Indotan Sumbawa Pte. Ltd. has sold its 90% share in the Indonesian company that owns the Taliwang project (remaining 10% held by the West Sumbawa Regency Government) to a prominent Indonesian businessman (the Purchaser).
The Purchaser has paid US$1,000,000 and granted a 5% net smelter royalty (NSR) to Southern Arc. The Purchaser has the option to buy back 3% of the NSR by paying Southern Arc US$3,000,000.
The Purchaser is required to make additional payments to Southern Arc to fulfill the agreed purchase price. The Purchaser will pay Southern Arc 40% of gross revenue generated from the Taliwang project, after payment of the Southern Arc NSR, until the aggregate amount of such payments equals US$750,000.
Alternatively, the Purchaser has the option of making a one-time payment of US$600,000 if the payment is made before January 12, 2015.