The MOU gives LRS an exclusive 45 day period to complete due diligence on the Project to ascertain a project valuation.
The consideration payable by LRS to MA will be negotiated in good faith on the completion of the due diligence with the following conditions:
a) The ability to enter into a joint venture agreement by funding a Bankable Feasibility Study to earn up to 50% of the Project; and
b) the ability at any stage during the due diligence period to elect not to proceed with the jointventure by notifying MA within a 14 day period.
In the event that LRS elects to proceed with the Joint Venture upon the expiry of or during the due diligence period, commencement of the Joint Venture will occur on the date of the transfer of legal ownership of the Projects to a new company which shall be 60 days from the date of expiry of the due diligence period or such extended date as shall be agreed upon by the parties acting reasonably.
