Global ophiolite localities (Hartmann et al, 2012)
The Japan Organization for Metals and Energy Security (JOGMEC) has entered into a Global Generative Exploration Alliance with FPX Nickel. The aim of this partnership is to identify, acquire, and develop high-quality awaruite nickel targets worldwide.
During the first phase of the Generative Alliance, JOGMEC will fund at 100% up to $650,000 per year for a minimum of two years. Each of the parties will appoint two representatives to a Management Committee to oversee exploration activities, and FPX will act as the operator over the initial two-year term, earning a fee equal to 10% of the General Alliance expenditures.
One or more specific exploration targets identified by the Generative Alliance may be advanced to a second phase to be further developed as a separate designated project (“Designated Project”). Each Designated Project will have its own work program and budget with the objective, including through drilling, to test and further develop the identified targets. For each Designated Project, JOGMEC and FPX will fund 60% and 40%, respectively, for approved work programs.
If a Party’s beneficial interest in a Designated Project is diluted to less than 10%, the diluted party’s interest will be converted to 1.5% Net Smelter Return (“NSR”) royalty over that Designated Project, with the other party retaining a right to buy-back 1.0% of the NSR royalty for $3,500,000.