Common use of Initial Acquisition Clause in Contracts

Initial Acquisition. On completion of a bankable feasibility study in relation to the Burnstone Project, ▇▇▇▇▇▇▇ will acquire 15% of the issued share capital of Southgold (the “Initial Shares”) from GBG (through its affiliate). The purchase price will be the value of the shares determined by taking the net present value of 15% of the Burnstone Project as determined by a valuation derived from the bankable feasibility study and the parameters of the valuation will be those that would ordinarily be applied by North American mining analysts when valuing South African gold deposits which are similar to the Burnstone Project and adjusting that figure for any other net assets or liabilities of Southgold. In the event that GBG is not required to provide funding for the acquisition by ▇▇▇▇▇▇▇ of the Initial Shares as contemplated in Section 1(a)(iv), ▇▇▇▇▇▇▇ shall be allowed a discount on such purchase price equal to the lesser of 10% or R2,000,000.