Azerbaijan, Baku, Sep. 26 / Trend E. Kosolapova/
Australian Great Western Exploration (GRE) has completed the agreement on acquisition of 50 percent in the JV Company which holds the Sub Soil Contract over the Spasskaya copper project in Kazakhstan from Tauken Samruk (TKS), the company reported.
GTE has transferred funds to TKS to reimburse the costs of the Sub Soil Contract as agreed in the Implementation Agreement.
The next step is for the JV Company to be re-registered with the appropriate Government Department to reflect the new ownership details and to register the new management of the company. All the necessary paperwork has been completed and lodged for the re-registration of the JV Company which is expected to be confirmed shortly.
As per the Implementation Agreement GTE will initially own 50 percent of the JV Company, however if the company withdraws from the JV prior to fulfilling its obligations then this share will be transferred back to TKS at no cost. The JV partners will also now finalise the Company Charter.
As the re-registration procedures required to reflect the change of management of the JV Company are yet to be completed and to ensure that work commenced on the project as soon as possible to avoid the risk of not making the first year's expenditure commitment as set out in the Sub Soil Contract, GTE and TKS agreed that TKS would manage the tender process. TKS has advised GTE that the tender process was completed according to the rules of Samruk Kazna, the Sovereign Fund of Kazakhstan and parent company of TKS. GTE has also sought additional protection to ensure that the contractor undertakes exploration in accordance with appropriate standards, including the JORC Code.
Once the re-registration of the JV Company is completed, all future contracts will be tendered by the JV Company directly, of which GTE will have management control.
Great Western Exploration first entered into a Heads of Agreement to form a 50/50 Joint Venture with TKS, the National Mining Company of Kazakhstan, in November 2011 and signed the original Implementation Agreement April 2012 to develop the Spasskaya Copper Field subject to granting of the Subsoil Contract and shareholder approval of TKS parent Company, Sovereign Fund of Kazakhstan. Subsequently the Sub Soil contract was granted in February 2013 and the final version of the Implementation Agreement was approved by the Sovereign Fund in April 2013 and maiden drilling commenced in June 2013.
The Spasskaya Copper Project is located in central Kazakhstan near the major regional centre of Karaganda and comprises a 12,500 square meters Subsoil Contract covering the majority of the historic Spasskaya Copper Field.
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