Northcliff Resources Ltd. (TSX:NCF) announced that it has entered into an agreement with Todd Minerals Ltd. whereby Todd will provide up to $39 million in funding for the New Brunswick, Canada-based Sisson tungsten-molybdenum project.
According to the press release, investment details include:
- Todd and Northcliff will enter into a limited partnership agreement under the name of the Sisson Project Limited Partnership (the ‘Limited Partnership’) to advance and operate the Sisson Project.
- Todd will have the right to acquire an initial 11.5% interest in the Limited Partnership by investing $14 million on a staged basis. Failure to complete the full $14 million investment will result in Todd divesting its entire interest in the Limited Partnership.
- Todd’s initial investment will be made in three tranches with the first tranche of $5 million to be made on the execution date of the Limited Partnership agreement. The remaining two investment tranches of $5 million and $4 million are to be made by Todd upon completion of agreed project milestones.
- Todd holds an option to acquire an additional 10% interest in the Limited Partnership (for a total potential interest of 21.5% in the Limited Partnership) by investing $20 million in the Limited Partnership upon a final investment decision to commence construction.
- To the extent that Todd’s investment has, from time to time, been exhausted to fund project expenses, Todd and Northcliff will each be required to fund their pro rata portions of the development capital of the Sisson Project.