Seqi Olivine Termination Fee

Seqi Olivine Termination Fee
The Seqi Olivine Termination Fee was included in Intex Resources’ portfolio when the Company was split out of Crew Gold Corporation. This fee is the result of an agreement with between Crew Gold and Minelco AB, a subsidiary of iron ore producer LKAB of Sweden.

Facts

Ownership
Sold to Minelco AB in June 2005
Status
Termination Fee
Location
Greenland

In June 2005, Crew Gold sold the Seqi Olivine deposit for proceeds of USD 10 million and an annual fee to be paid by Minelco AB over 17 years based on produced tonnage. For years 3 through to 14 of production there is a guaranteed minimum royalty of USD 1 million per year based on production and subject to certain conditions. The income from this fee will be recognised in the financial statements of Intex Resources as it is earned.