RE:Appian royalty
Fredfudpucker00 wrote: Just a question. I know ANR2 paid $2million US for .5% NSR , but not sure how much Appian paid for 1.5 % NSR . Can someone help me out. Thanks.
From the last financial report...
Certain of the claims and leases associated with the Sugar Zone property are subject to net smelter royalties (“NSR”) of 2.0% in favour of the original vendors of the properties.
(Interestingly enough, I talked with one of the original prospectors today and was told he is still receiving his portion of this royalty. Although there has been lots of offers to purchase this 2.0% NSR, he and the two other parties are continuing to hold)
On December 18, 2019, the Company granted a 1.5% NSR on the entire Sugar Zone Property in favour of an affiliate of Appian in exchange for payment by Appian of US$7.5 million.
On July 17, 2020, the Company granted a further 0.5% NSR on the entire Sugar Zone Property in favour of an affiliate of Appian in exchange for a payment by Appian of US$2.0 million as part of the Appian Financing.
The Company treated this transaction as a partial disposition of its investment in the Sugar Zone Property. The proportion of the estimated fair value of the Sugar Zone Property disposed of was calculated and the net book value of the Company’s plant and equipment was reduced by such proportion. The difference of $0.6 million was recorded as a gain on the partial disposition of its property during the year ended December 31, 2020. The July 2020 royalty grant has increased the royalty payable to an affiliate of Appian from 1.5% to 2.0%.
Hope this helps Fred