Sukari Concession Agreement
Centamin's primary, wholly owned subsidiary is called Pharaoh Gold Mines NL (PGM) and our interests in the Concession Agreement for Sukari are held and registered in the name of PGM. PGM owns 50% of the operating company, Sukari Gold Mines (SGM), with the Egyptian Mineral Resource Authority (EMRA) owning the remaining 50%. The Concession Agreement granted SGM the right to explore, develop, mine and export gold at the Sukari Gold Mine.
The fiscal terms of the Concession Agreement are as follows:
- PGM must solely fund SGM and is responsible for the day-to-day management of the company, but PGM is entitled to recover costs and expenses from sales revenue from EMRA
- PGM will not pay any taxes or duties for 15 years, with an option to extend for further 15 years
- PGM will pay a royalty of 3% net sales revenue
- After the deduction of recoverable expenses and the payment of the 3% royalty, the profits are shared equally between PGM and EMRA (*with an additional 10% of proceeds paid to PGM in the first 2 years that there are net proceeds and an additional 5% in the following 2 years).