Retrospective Quiz

1.       if buyer is acquiring a target for 5 million us dollars out of which 2 million will be paid in cash and we have created consideration details of cash and unclassified cash. What is the procedure regarding this scenario?

• We will Mark combination in both rows of cash and unclassified cash as buyer is paying two different types of consideration types for the same asset.

•   We won’t mark combination as both cash and unclassified cash rows as both these consideration types come under the same head.

•       We will put the whole amount of 5 million in unclassified cash to keep the symmetry

• We will create 2 million cash row and create 3 million unclassified rows instead of 3 million unclassified cash row and mark the row for combination payments as well.

"The Company will acquire the Property (the "Transaction") by purchasing all the issued and outstanding common shares (the "Frontier Shares") of Frontier Metals Canada Holdings Corp. ("Frontier Canada"). Frontier Canada is a private company existing under the laws of British Columbia. The holders of the Frontier Canada share (the "Vendors") are at arm's length to the Company."

“Frontier is the holding company that holds the property”

• Target will be property as that is the drill down thing being acquired and the seller will be Frontier as it holds the asset.

• We will Take Target and seller as Frontier

• We will take target as Frontier and seller as share holders of Frontier as they are the ones selling the company.

• We will take the property as target, and we will take seller as ‘Undisclosed Sellers’

• We will take the property as target, and we will take seller as ‘Undisclosed Seller’

   Do we need to source tag the CSO in CTS if we have fetched the data from Add Target securities?

• No why to do it we only source tag this in west

• Yes even if this is system fetched we need to source tag the same.

Midland Exploration Inc. has agreed to acquire the remaining 50% stake in ABC copper project from SOQUEM Inc. Deal Features will be:

• Minority Owner Increasing Ownership Stake

• Majority owner Increasing Ownership + Majority Owner Purchasing Remaining stake.

• Majority Owner Purchasing Remaining stake

• Majority owner Increasing Ownership

  When we should mark the deal structure in the WEST Deal info tab?

• When PE is involved, and target falls under SNL covered industries

• We will mark deal structure in cts and west both

• We only add deal structure in CTS and should not mark in WEST under any scenario.

"ABCD Mining Corp. signed an option agreement on April 21, 2013 to earn 100% interests in XYZ gold mine for $1.0 million cash and $25 million exploration expenditures over a period of 3 years."

•  

  We will Cover the transaction as the as this is an option agreement with earn and capex both.

• We will cover the transaction as the even though the deal is of 2013 the capital expenditure is above us$ 25 million

• We will cover the transaction as even though this deal of 2013 this will complete in 2016 which fall under comprehensive guarantee.

• We will not cover the transaction as the transaction falls outside our comprehensive guarantee.

The buyer will incur 2 million in capital expenditure and the transaction terms also include 1 million worth of PAC (portable Assessment Credits).

• Enter CAPEX as 2 million and ignore PAC

• Enter Capex as 2 million and enter PAC as unclassified consideration

• Add PAC in capex and enter it as 3 million

• Deduct PAC from Capex and enter CAPEX as 1 million

The deal first release is on 3/31/2023, in add target securities detail we have the latest cso available for 03/31/2021. would we add the same?

• we will add whatever is the latest available in the funding form while clicking Add target securities.

• can't add the same as its older than 18 months.