Item 1.01 Entry into a Material Definitive Agreement.
On
The closing of the Asset Sale Agreements is conditioned upon, among other
things, AMI entering into agreements with the majority holders of its Series A
Notes and Series 2023 Notes that result in the elimination of the outstanding
balances of both series of notes. The combined principal balance of both series
of notes was
If the closing conditions of the Asset Sale Agreements are not met within a
reasonable amount of time, the Asset Sale Agreements will terminate without
closing, BMCO and BMI will not pay the
If the closing conditions of the Iron Sale Agreement are satisfied, AMI will (i)
transfer to BMCO title to the rights of the iron oxide minerals that exist on
the patented and unpatented mining claims of the
If the Mining Operations Agreement becomes effective, AMI will be required to extract, haul, store and prepare for processing the i ron o xide m
inerals ("Mining") for BMCO. BMCO will reimburse AMI for all direct Mining costs and pay AMI 10% of the labor costs included in the Mining costs as a fee. AMI will have direct oversight over all Mining activities including the activities of contract labor that may be utilized for Mining. The Mining Operations Agreement will require AMI to make available to BMCO iron mining equipment owned by AMI. Under the Mining Operations Agreement, BMCO will pay AMI, depending on the sale price, either 20% or 25% of the gross profit of any sales of crushed, screened or milled iron to four Qualified Customers that have been developed by AMI.
If the closing conditions of the Mill Sale Agreement are satisfied, AMI will sell the Mill to BMI.
If the Milling Operations Agreement becomes effective, AMI will be required to mill, package and prepare for shipping ("Milling") the iron oxide minerals for BMI. BMI will reimburse AMI for any costs it incurs directly related to Milling of iron oxide minerals for BMI. BMI will also pay AMI 10% of the labor costs included in the Milling costs as a fee. AMI will have direct oversight over all Milling activities including the activities of any contract labor that may be utilized for Milling. As part of the Milling Operations Agreement, BMI will agree to allow AMI to utilize any excess capacity of the Mill. BMI and AMI will each pay its share of the maintenance expense of the Mill based on the volume of minerals each processes through the Mill. AMI will maintain ownership of the laboratory equipment located in the Mill and allow BMI to use the equipment for a fee.
AMI's halloysite resource and related milling assets are not part of the proposed transactions described above.
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