JV documents under review

GOLD Ridge Community Investment Limited (GCIL) is reviewing Frontier Resources’ proposed joint venture agreement to acquire 80% of the Gold Ridge project on Guadalcanal Island.
JV documents under review JV documents under review JV documents under review JV documents under review JV documents under review

Frontier chairman Peter McNeil will traveled to the Solomon Islands last week to resolve issues arising from the agreement and facilitate the process, while directors Paige McNeil and Peter Swiriduk have promoted the acquisition at an investor conference in Broken Hill and to stockbrokers in Melbourne and Sydney.

McNeil will continue the promotion in Perth this week.

GCIL's vendor consideration is proposed at 19.9% shares in Frontier, plus a one-year deferred 4.98% interest; a 20% differed carried interest into production and repayable from 50% of future profits; and a director's position on the company's board.

Once the JV agreement has been signed by Frontier and GCIL, a number of proposals will be further discussed in a Frontier Extraordinary General Meeting. The meeting date is yet to be determined.

These proposals include the approval of the JV; a 10-to-1 share consolidation which will give leverage to future investors regarding a mine feasibility study and refurbishment; renewing Frontier's 10% placement facility; issuing directors with incentive options; and ratifying an employee incentive option plan.

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