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Working for our community.Mining News
Mining Pages
WCP
Gets Big
Backing
17.5.07
WCP Resources Limited has signed a binding agreement to provide funding of its farmin rights with Tasman Resources Limited on its Lake Torrens copper, gold, uranium project next to BHP Billiton Limited's Olympic Dam mine at Roxby Downs. The Agreement has been entered into with Mr. Stan Bharti on behalf of a group of investors.
Mr. Bharti is the principal of Forbes & Manhattan Inc., a renowned resources merchant bank based in Toronto, Canada.
Forbes & Manhattan focuses on combining quality assets, management, financial and marketing support in early stage public companies in specific opportunities and sectors they believe to have above-average returns with a defined time period.
Mr. Bharti brings over 25 years of business, management and financing experience largely in the resources sector and has over the last decade raised over several hundreds of million dollars in public markets.
Under the terms of the Agreement, Mr. Bharti will, on behalf of a group of investors, establish a private company for the purposes of entering into an option agreement with WCP to enable it to earn up to a 50% interest in all of WCP's rights and interests under the existing Farmin Agreement with Tasman.
An option fee of $50,000 has already been paid to WCP under this Agreement and WCP will be entitled to one director on the board and 25% of the shares in the Company.
Once the Company has fully funded the $6.5 million expenditure requirement, WCP will grant the Company an option to increase its interest to a 51% interest in the Lake Project by paying to WCP either $70 million in cash or $20 million in cash and sole funding of its obligations under the Tasman JV Agreement until commercial production is achieved.
WCP's Executive Director, Greg Martyr, said "This is a very attractive and innovative transaction that has the capacity to fund all of WCP's obligations in the Lake Torrens Project.
ìThis project represents a high cost but extremely high reward proposition for WCP. ìWe believe this transaction with a renowned Canadian resources merchant banker gives us the right exposure to a significant interest to the enormous upside potential evidenced by the numerous world class IOCGU deposits in the immediate region of Lake Torrens,î he said.
Drilling on the project was due to start this month.
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