Senior handcuffed by a Confidentiality Agreement from taking over NOT? Maybe, maybe not. We know that there were a number of majors that signed confidentiality agreements with NOT back in 2007/2008 that gave them inside access to NOT field data. Juniors (and even seniors) do these agreements to stimulate interest in their properties, get expert information from experts in other companies in return for access to the non-public data, to stimulate and promote JV activity, and to keep their projects 'Top of Mind' with the seniors if they get put in play (takeover). Each agreement is UNIQUE but would have several clauses that prevent the senior from acting on the information they see including:
- A defined period in which the company can't use the information they get to see.
- Not being able to acquire more then a fixed percentage of the junior.
- Not being able to acquire land within 'X' km of the boundaries of the junior's claim holdings.
- Not being able to initiate a hostile takeover.
The flip side is that the Confidentiality Agreements usually only last for 6 months to a year and bind the senior company for 6 months or so after. They also tend to have clauses that void the restrictions if the agreement if the junior is subject of an acquisition offer (hostile or friendly).
