{"id":55,"date":"2020-04-01T19:41:37","date_gmt":"2020-04-01T11:41:37","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=55"},"modified":"2020-10-07T10:49:27","modified_gmt":"2020-10-07T02:49:27","slug":"dilution-withdrawal-assignment","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/","title":{"rendered":"Dilution, Withdrawal\/Exit, Assignment"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; module_class=&#8221;main-content2&#8243; _builder_version=&#8221;4.4.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/' title='Mining Joint Venture Agreements'>Mining Joint Venture Agreements<\/a><\/li><li><span>Dilution, Withdrawal\/Exit, Assignment<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Advising Resource Companies<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;230379&#8243;]<div class=\"content-menubar\">\r\n<div class=\"page-menu-panel\">\r\n<h3>Advising Resource Companies<\/h3>\r\n<p><span class=\"hamburger\"><\/span><\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul><\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title\">Dilution, Withdrawal\/Exit, Assignment<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<h2>Dilution<\/h2>\r\n<p>\r\n    The JV parties should agree in advance the circumstances where the dilution of a JV partner will be permitted. Due consideration should be given to the impact of the dilution on approved programmes and in particular the effect it will\r\n    have on the respective on-going contributions of the JV partners. The interests and the contributions of the remaining non-diluted JV partners should be recalculated on a pro-rata basis to reflect their revised respective shares in the\r\n    JV. The recalculation formulae should be agreed in advance and should be included as a schedule to the JV agreement. Provisions relating to the issuing of a dilution notice should also be included.\r\n<\/p>\r\n<h2>Withdrawal\/Exit<\/h2>\r\n<p>The JV agreement should include provisions relating to how and when a JV partner may transfer its interest and if there are to be pre-emptive rights that allow a remaining partner to purchase the interest of the exiting partner.<\/p>\r\n<p>\r\n    The JV partners should pre-establish a minimum permitted JV interest. Where a JV partner is diluted below this interest the partner can be deemed to have withdrawn from the JV. Provisions should also be included to account for the\r\n    withdrawal of a JV partner who is in default of their JV obligations.\r\n<\/p>\r\n<p>Careful consideration should be given to the effect of the withdrawal of a JV partner and to the conditions precedent, especially third party approvals (if required), that should be satisfied before the withdrawal can be affected.<\/p>\r\n<h2>Assignment<\/h2>\r\n<p>\r\n    The JV agreement should include provisions relating to the assignment of JV interests. Specifically, the agreement should contemplate in what circumstances an assignment shall be permitted, what consents will be required (including\r\n    third-party consents), whether or not partial assignments shall be permitted, pre-emption rights and the rights and obligations of the assignee.\r\n<\/p>[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/advising_resource_companies\/dilution_withdrawal_assignment.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.8&#8243; hover_enabled=&#8221;0&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/' title='Mining Joint Venture Agreements'>Mining Joint Venture Agreements<\/a><\/li><li><span>Dilution, Withdrawal\/Exit, Assignment<\/span><\/li><\/ul> Advising Resource Companies Advising Resource Companies <ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul> Dilution, Withdrawal\/Exit, AssignmentDilution The JV parties should agree in advance the circumstances where the dilution of a JV partner will be permitted. Due consideration should be given to the impact of the dilution on approved programmes and in particular the effect it will have on the respective on-going contributions of the JV partners. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":51,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:heading -->\r\n<h2>Dilution<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The JV parties should agree in advance the circumstances where the dilution of a JV partner will be permitted. Due consideration should be given to the impact of the dilution on approved programmes and in particular the effect it will have on the respective on-going contributions of the JV partners. The interests and the contributions of the remaining non-diluted JV partners should be recalculated on a pro-rata basis to reflect their revised respective shares in the JV. The recalculation formulae should be agreed in advance and should be included as a schedule to the JV agreement. Provisions relating to the issuing of a dilution notice should also be included.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Withdrwal\/Exit<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The JV agreement should include provisions relating to how and when a JV partner may transfer its interest and if there are to be pre-emptive rights that allow a remaining partner to purchase the interest of the exiting partner.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The JV partners should pre-establish a minimum permitted JV interest. Where a JV partner is diluted below this interest the partner can be deemed to have withdrawn from the JV. Provisions should also be included to account for the withdrawal of a JV partner who is in default of their JV obligations.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Careful consideration should be given to the effect of the withdrawal of a JV partner and to the conditions precedent, especially third party approvals (if required), that should be satisfied before the withdrawal can be affected.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Assignment<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The JV agreement should include provisions relating to the assignment of JV interests. Specifically, the agreement should contemplate in what circumstances an assignment shall be permitted, what consents will be required (including third-party consents), whether or not partial assignments shall be permitted, pre-emption rights and the rights and obligations of the assignee.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[25],"class_list":["post-55","page","type-page","status-publish","hentry","category-advising-resource-companies","cat-25-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/55","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=55"}],"version-history":[{"count":17,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/55\/revisions"}],"predecessor-version":[{"id":232653,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/55\/revisions\/232653"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/51"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=55"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=55"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}