Cobalt Blue Holdings Limited (ASX:COB) is pleased to clarify matters and reduce investor uncertainty following a request by the Australian Securities Exchange (ASX) to release the Thackaringa Joint Venture Agreement (JVA). The JVA is attached to this letter.
Now that the market has full visibility of the JVA, COB takes this opportunity to summarise its dealings.
24 October 2018 – COB withdraws from Earnings Period and acts as Interim JV Manager.
- JVA Clause 3.3(a) – COB does not exercise its right to earn the Stage 3 Percentage Share.
- JVA Clause 7.1, 7.5(c) – if a new Manager cannot be appointed and act immediately, the Joint Venturer holding the largest Joint Venture Interest must act as interim Manager until the new Manager is appointed and commences its duties.
24 October 2018 – Interim JV Manager calls Management Committee Meeting for 9 November 2018.
- JVA Clause 7.5(c) – COB as Interim JV Manager, calls Management Committee Meeting for 9 November 2018.
- JVA Clause 6 – Secretary of the Management Committee calls for a meeting to be held on 9 November 2018.
9 November 2018 – Quorum is not formed as Broken Hill Prospecting Limited (ASX:BPL) representatives to the Management Committee are not present. BPL Managing Director and Chairman, however, are present. Detailed informal discussions concerning the drilling campaign were held.
- JVA Clause 6.4 – Quorum not established – meeting to be held in 7 days.
16 November 2018 – Formal Management Committee meeting held – quorum established. Budget resolutions passed. Billing Statements issued to JV partners.
- JVA Clause 9 – Interim JV Manager presents budget to Management Committee for simple majority vote resolution.
- JVA Clause 9.5 – Interim JV Manager submits Billing Statements to all Joint Venturers.
23 November 2018 – COB pays its Called Sum under the Billing Statement. BPL does not pay. Non Payment Notice issued to BPL.
- JVA Clause 13.2
29 November 2018 – BPL issues Optional Dilution Notice.
- JVA Schedule 3, Clause 1(a).
Cobalt Blue Holdings Limited
Robert J Waring