Thinking out Loud HereI am very concerned with Declan's current cash position, their ability to raise funding and their ability to meet the staged exploration expenditures on their Gibbons Creek acquisition from Lakeland under the Option Agreement entered into around Dec 2013. Basically Declan need to spend in the first 12 months (till Dec 2014), $1,250,000 on the property, pay $100,000 to Lakeland and issue 2,000,000 shares to Lakeland in order to earn a 50% interest in year 1 of the Option Agreement. Within 2 years, they need to spend another $1,250,000, pay another $100,000 to Lakeland and issue another 2,000,000 shares to Lakeland to earn the next 10%. So if Declan doesn't meet their year 1 obligations, I guess they don't earn their 50% interest (or any part of it). Does Declan effectively lose the property if they don't meet their payment obligations by the end of Year 1? Can they still earn their 60% interest by the end of Year 2 if they spend $2,500,000 , pay $200,000 and issue 2,000,000 shares by then. I'm just trying to understand how the Option Agreement works in the event of non-performance in Year 1 by Declan. I guess in the worst case scenario, Lakeland may have to renegotiate the terms of the deal whereby if Declan pays less towards the property in year 1 , their interest earned might be less.
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