A Neat Piece of News - Game Changer?
Post# of 7
Posted On: 06/06/2013 8:30:31 PM
A Neat Piece of News - Game Changer?
Dear Shareholder,
We have a very positive announcement, but let’s start with this disclaimer. Because of the past history of promises from Copper King (under previous management) let’s be very clear that by making this announcement we are NOT promising or guaranteeing anything. We are not promising every shareholder will be rich or that the deal will go off without a hitch etc., etc., etc., etc., (insert your own fine print here).
But.............
Copper King has signed a Memorandum of Understanding (MOU) with Al Manhal International Group for a financing package to fund one of our new projects.
The total financing is for up to $871 Million with $ 271 Million going into the new project over the next couple of years. (We can’t name the project just yet as the details of the purchase are not finalized, but the financing MOU with Al Manhal is signed)
The first $271 Million will be used to get the mine onto production.
Under the terms of the MOU Copper King and Al Manhal will set up a Joint Venture Corporation. Copper King will provide the project, the expertise and the operator (subject to the terms of the JVC) and Al Manhal will provide the funding. Voting shares in the JVC will be 50/50.
Copper King will get a contract to further develop (it is an existing mine primed for immediate start-up) and operate the mine on a 'Cost Plus 10%' basis. Net profits will be split 80/20 until Al Manhal recovers it’s investment. As the $271 Million investment is recovered, the profit split will 'step rate' in favor of Copper King until the profits are split 50/50. Remember that Copper King is getting it’s costs plus 10%, so the profit split is more like 72/28 in the beginning. Once the $271 Million is paid down, the profit split will actually be 55/45 in Copper King’s favor.
Please note: ANY deal we pursue is subject to Copper King exiting bankruptcy. To exit bankruptcy Copper King still needs to fund the POR.
Also note, the project funding cannot be used to fund the POR, those funds MUST come from us, the existing shareholders. The Opportunity to fund the POR and therefore participate in this project and others Copper King is pursuing will end on or before June 15th.
I’ll say it again -- THE POR MUST BE FUNDED AT LEAST BY JUNE 15th. (The unsecured creditors committee has given us a 'drop-dead' date - that will not be extended).
If you haven’t already, please get a copy of the Equity Security Funders Private Placement Memorandum (PPM) and take action. You can get a copy by calling either Chuck Dawson at 770-899-3468 or Gary Gough at 801-358-1434.
Dear Shareholder,
We have a very positive announcement, but let’s start with this disclaimer. Because of the past history of promises from Copper King (under previous management) let’s be very clear that by making this announcement we are NOT promising or guaranteeing anything. We are not promising every shareholder will be rich or that the deal will go off without a hitch etc., etc., etc., etc., (insert your own fine print here).
But.............
Copper King has signed a Memorandum of Understanding (MOU) with Al Manhal International Group for a financing package to fund one of our new projects.
The total financing is for up to $871 Million with $ 271 Million going into the new project over the next couple of years. (We can’t name the project just yet as the details of the purchase are not finalized, but the financing MOU with Al Manhal is signed)
The first $271 Million will be used to get the mine onto production.
Under the terms of the MOU Copper King and Al Manhal will set up a Joint Venture Corporation. Copper King will provide the project, the expertise and the operator (subject to the terms of the JVC) and Al Manhal will provide the funding. Voting shares in the JVC will be 50/50.
Copper King will get a contract to further develop (it is an existing mine primed for immediate start-up) and operate the mine on a 'Cost Plus 10%' basis. Net profits will be split 80/20 until Al Manhal recovers it’s investment. As the $271 Million investment is recovered, the profit split will 'step rate' in favor of Copper King until the profits are split 50/50. Remember that Copper King is getting it’s costs plus 10%, so the profit split is more like 72/28 in the beginning. Once the $271 Million is paid down, the profit split will actually be 55/45 in Copper King’s favor.
Please note: ANY deal we pursue is subject to Copper King exiting bankruptcy. To exit bankruptcy Copper King still needs to fund the POR.
Also note, the project funding cannot be used to fund the POR, those funds MUST come from us, the existing shareholders. The Opportunity to fund the POR and therefore participate in this project and others Copper King is pursuing will end on or before June 15th.
I’ll say it again -- THE POR MUST BE FUNDED AT LEAST BY JUNE 15th. (The unsecured creditors committee has given us a 'drop-dead' date - that will not be extended).
If you haven’t already, please get a copy of the Equity Security Funders Private Placement Memorandum (PPM) and take action. You can get a copy by calling either Chuck Dawson at 770-899-3468 or Gary Gough at 801-358-1434.
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