Hey Everyone,
I think the option we have with Champion will prove to be quite prosperous for Fancamp.
Champion is focused on proving up to a billion tons of 30% iron ore, easy. They have that amount as a virtual estimate on just 1 claim block and there are many others. Anyways, I have seen these properties (1 billion tonnes) sell for about 200 million. I will try to get a list of some examples. If this can be done, here's the impact for Fancamp:
- Fancamp's 15% would bring in 30 million.
- We will have about 1.5 million shares of Champion at the end of the 4 year term (Peter better not sell these prematurely!)
- A 1.5% NSR or reduced to 1.0% in exchange for 1.5 million
Pretty sweet deal for not lifting a finger! I do agree that Peter is an excellent shopper, but it is the vision and corporate strategy of this company that is not well communicated to shareholders. At the same time, when you're in the ROF, it may not be prudent to disclose your strategy and give other players a leg up. Anyways, i digress. But I still give the benefit of the doubt to Peter and think i'm seeing a change in being more aggressive by going after these financings. Hopefully Mac will also prove invaluable to building our company.
Well I just wanted to comment on this option, which i think will be big for Fancamp's future growth. Here are the terms as per Champion's recent press release:
The Company is currently in the second year of an option agreement with Fancamp Exploration Ltd. (FNC) and the Sheridan Platinum Group Ltd. (the "Vendors") on the Property. Champion can earn a 65% interest in all 16 claim blocks within the Property by expending C$6 million in staged exploration and development work expenditures, making cash payments totalling C$1 million, and issuing 2.9 million shares, all over a 4-year period, with the Vendors retaining a 3% Net Smelter Returns royalty, one third of which may be purchased by Champion for C$3 million. The agreement also includes a right of first refusal on the Lamelee Lake Claim Block, as announced by the Company on May 13, 2009. Once Champion has completed its earn-in, a 65-35 joint venture would be formed between Champion and the Vendors.
