Production Decision. If TCAM has not prepared a Feasibility Study as part of its earn-back or if no Feasibility Study has been previously approved, Holdco may, if its Board approves, prepare a Feasibility Study as a separate Program. The Feasibility Study which is prepared by the Operator shall include an assessment of the same elements as set out in paragraph and is to be in a form which the Operator, acting in good faith, considers suitable for each of the parties in arranging production financing for their respective shares of mine costs. Holdco’s Board shall not meet to consider a Feasibility Study, whether prepared by TCAM as part of its earn-back or the Operator under this paragraph , any sooner than 60 days after it was delivered to each party, unless the parties agree to an earlier meeting. Each party is entitled to elect, upon notice to the Operator within 90 days after the date the Board approved a production decision, to participate in the construction and operating costs required to construct and operate the mine at its then percentage shareholding, or some lesser percentage (but at least 10%), in which latter case the shareholdings of the parties shall be adjusted so that each party has a shareholding percentage equivalent to its level of participation.
Production Decision. (a) The Operator should prepare a Feasibility Study only upon receipt of instructions to do so from the Management Committee.
(b) After the Operator prepares a Feasibility Study, it shall submit the Feasibility Study to the Management Committee. The Management Committee shall meet and decide whether further work is required to complete the Feasibility Study or the Feasibility Study is complete.
(c) If the Management Committee determines that the Feasibility Study is complete, it shall then decide whether development of a mine is warranted. If the Management Committee makes a positive decision (a "Production Decision"), it shall then instruct the Operator to prepare an overall Program and Budget consistent with the Feasibility Study for all Operations through to the end of the Development. Until Operations have then been completed through to the end of Development, each Program and Budget adopted pursuant to this Article 7 (it being contemplated that the overall Program and Budget will be implemented through incremental Programs approved pursuant to this Article 7) shall be consistent with the overall Programs and Budget and the Management Committee will use reasonable efforts to ensure, but will not guarantee, that the total Costs from the completion of the Feasibility Study through Development does not exceed the overall Program and Budget by more than 20%.
Production Decision. Kennecott's right to receive such shares shall be contingent upon La Teko not surrendering the MD Project to Bering Straits Native Corporation.
3. Kennecott shall also grant to La Teko an exclusive option to purchase (the "Option") all of Kennecott's right, title, and interest in the Sheelite Dome Project ("SD Project"), subject to Kennecott's right to reacquire an interest in the SD Project as set forth in Paragraph 6 below. As consideration for Kennecott granting such Option, La Teko shall make payments to the underlying landowner, and Exploration Expenditures for the benefit of the SD property in the following amounts: Year Payments Expenditures ---- --------- ------------ 1998 C$ 70,000 C$150,000 1999 C$ 65,000 C$200,000 2000 C$ 0 C$200,000 2001 C$ 0 C$250,000 --------- --------- Total C$135,000 C$800,000
4. If at any time after exercising its Option, La Teko intends to initiate development of the SD Project, La Teko shall notify Kennecott in writing and concurrently provide Kennecott with a copy of the feasibility study recommending the operation of a mine on the SD property. Kennecott shall have the right to advise La Teko within sixty (60) days whether it wishes to reacquire a forty-nine percent (49%) interest in the SD Project. If Kennecott wishes to exercise its reacquisition right, it will do so by providing written notice of its intent to La Teko, and within thirty days thereafter providing La Teko with payment of an amount equal to one hundred and fifty percent (150%) of forty-nine percent (49%) of the expenditures incurred by La Teko on the SD Project.
5. After Kennecott has exercised its reacquisition right, Kennecott and La Teko shall operate the SD Project as a joint venture, incorporating such terms as well be negotiated before execution of the Option Agreement. Thereafter, each party shall contribute its share of development expenditures in relation to its current participating interest. La Teko shall have the option of managing the joint venture, or appointing Kennecott as manager.
6. In the event Kennecott notifies La Teko that Kennecott will not exercise its right to reacquire an interest in the SD Project, Kennecott's interest in the SD Project shall be converted automatically to the right to receive two percent (2%) of net smelter returns from any mine located thereon.
7. Exploration Expenditures shall be made at La Teko's sole discretion and on such parts of the Projects as La Teko may deem appropriate. For the purposes of satisfyin...
Production Decision. Any decision to construct a mine to place the Property into production is to be based on a Feasibility Study approved by the Management Committee that will be prepared by the Manager as a separate Program under section 17. The Feasibility Study shall include an assessment of the financing alternatives and is to be in a form which the Manager, acting in good faith, considers suitable for each of the parties to present to international lenders in arranging production financing for their respective shares of mine construction Costs. The Management Committee shall not meet to consider a Feasibility Study any sooner than 90 days after it was delivered to each party, unless the parties agree to an earlier meeting. Each party is entitled to elect, upon notice to the Manager within 30 days after the date the Management Committee approved a production decision, to participate in the construction and operating Costs required to construct and operate the mine at its then percentage shareholding, or some lesser percentage (but at least 10% of the total Interests), in which latter case the Interests of the parties shall be adjusted so that each party has an Interest percentage equivalent to its level of participation. The Manager may only proceed to implement an approved production decision if elections have been made so that the projected construction Costs are fully funded. Except as permitted under section 20 or with the consent of all parties, no party shall pledge, charge or otherwise encumber its Interest.
Production Decision. No “Production Decision”, as such term is defined in the Shareholders’ Agreement, has been reached by the directors of Minera pursuant to the terms of the Shareholders’ Agreement.
Production Decision. (a) After the Manager prepares a Feasibility Study, pursuant to Section 8.6, it shall submit the Feasibility Study to the Management Committee. The Management Committee shall meet and decide whether further work is required to complete the Feasibility Study or the Feasibility Study is complete.
(b) If the Management Committee determines that the Feasibility Study is complete, it shall then decide whether development of a mine is warranted. If the Management Committee makes a positive decision (a “Production Decision”), it shall then instruct the Manager to prepare an overall Program and Budget consistent with the Feasibility Study for all Operations through to the end of Development. Until Operations have then been completed through to the end of the Development, each Program and Budget adopted pursuant to this Article 8 (it being contemplated that the overall Program and Budget will be implemented through incremental Programs and Budgets approved pursuant to this Article 8) shall be consistent with the overall Program and Budget and the Management Committee will use reasonable efforts to ensure, but will not guarantee, that the total Costs from the completion of the Feasibility Study through Development does not exceed the overall Program and Budget by more than 20%.
(c) If a Feasibility Study is prepared pursuant to Section 8.6 each Participant including the Participant which is Manager may elect, within 120 days of receipt of notice of a Production Decision, to contribute to the Costs of Development proposed in the Feasibility Study, in proportion to its Participating Interest, in some lesser proportion or not at all. If a Participant elects not to contribute at all it shall relinquish its Participating Interest and it shall have the right to receive a Net Profits Royalty as provided in Article 10.
(d) If a Feasibility Study is prepared pursuant to Section 8.7 and if the Participant that prepared the Feasibility Study decides that a mine is warranted and makes a Production Decision any Participant that did not contribute to the cost of preparation of the Feasibility Study may, by paying the Participant that prepared the Feasibility Study an amount that is equal to the Participant’s Participating Interest of the cost of the Feasibility Study multiplied by 150%, elect, within 120 days of the receipt of the Feasibility Study and notice of the Production Decision. to contribute to the Costs of Development proposed in the Feasibility Study in proportion to i...
Production Decision. 29.1 Holdco may, if its Board approves, prepare a Feasibility Study, as herein defined, as a separate program. The Feasibility Study which is prepared by the Operator and is to be in a form which the Operator, acting in good faith, considers suitable for each of the parties to present to a lender in an application for production financing for their respective shares of mine construction costs. The Board shall not meet to consider a Feasibility Study any sooner than 60 days after it was delivered to each party, unless the parties agree to an earlier meeting. Each party is entitled to elect, upon Notice to the Operator within 90 days after the date the Board approved a production decision, to participate in the construction and operating costs required to construct and operate the mine at its then percentage shareholding, or some lesser percentage (but at least 10%), in which latter case the shareholdings of the parties shall be adjusted as contemplated in §28 so that each party has a shareholding percentage equivalent to its level of participation. If any party elects not to contribute at a level of at least 10% then such party shall be deemed to have assigned and conveyed its shares in Holdco and rights under this Agreement to the other party and in return it will receive a royalty after payback of capital costs equal to 1.0% of net smelter returns defined and to be calculated and paid as set out in Schedule Error! Reference source not found.”.
Production Decision. For ninety (90) days following a positive production decision, each party to the Joint Venture will have the right to elect to participate in the financing in proportion to its then current participating interest in the Joint Venture. If a party does not elect to participate in the financing, or is unsuccessful in raising its proportionate share of the financing, then the other party may arrange all the financing required and if it does so, the participating interest of the party which has not provided its share of the financing will be converted to a two percent (2%) Net Smelter Return, to be determined and paid as provided in Schedule “D” hereto.
Production Decision. Within five (5) Days following the completion of the Development Documentation, copies thereof shall be delivered by the Project Company to each of Pan American and MRT. Within ninety (90) Days after the Development Documentation is so delivered to the Parties, each of the Parties may deliver to the other Party and the Project Company a written notice stating that it elects not to participate (“Withdrawal Notice”) in the financing of the Project operations pursuant to the Development Documentation. Unless otherwise agreed by the Parties, the Withdrawal Notice, once issued, shall not be capable of being withdrawn.
Production Decision. (a) After the Manager prepares a Feasibility Study, the Manager shall submit the Feasibility Study to the Management Committee. The Management Committee shall meet and decide whether further work is required to complete the Feasibility Study or the Feasibility Study is complete.
(b) Following the completion of the Feasibility Study, the Management Committee shall decide whether Development of a mine is warranted. If the Management Committee, following the completion of the Feasibility Study, makes a positive decision to develop a mine on the Properties in accordance with the Feasibility Study (“Production Decision”), the Management Committee may then instruct the Manager to prepare an overall Program and Budget that is consistent with the Feasibility Study for all Operations through to the end of Development (“Development Program and Budget”).
(c) The Manager does not warrant the sufficiency of the Feasibility Study for any purpose.
(d) If and when a Production Decision has been made, either Participant or the Manager may make a public announcement or statement, including a news release, in respect of the Production Decision and in doing so shall comply with the provisions of Section 16.3.
