In exchange for granting the extension of the maturity date to May 31, 2016 (from an original maturity date of May 9, 2014, which was subject to a one year extension upon certain conditions), a portion of Red Kite’s contingent right under a copper cathode off-take agreement entered with the Company in May 2012 (the "Offtake Agreement") in respect of the Company’s Florence Copper project in Arizona, USA (the "Project") has vested in Red Kite, effective on the date of the Agreement.
The Offtake Agreement originally granted to Red Kite the right to acquire up to 30% of the copper cathode produced from the Project, conditional upon 100% of the Loan being advanced to the Company. As of the date of the Agreement, $22.2 million of the Loan had been advanced to the Company. Under the terms of the Agreement, Red Kite’s contingent right to acquire up to 30% of the copper cathode produced from the Project has been replaced with a fully vested right to acquire 19% of the copper cathode offtake from the Project.
"The extension of the Red Kite maturity date provides Curis with greater flexibility as it advances the development of this world-class, next-generation copper project," commented Curis President and CEO, David Copeland. "The agreement allows us to focus on the Company’s key near-term objectives of completing project permitting, engineering and the start of construction of the Phase 1 Production Test Facility and the ability to pursue multiple financing alternatives without any medium term liquidity events."
