cash or not cash? Under the terms of the new agreement the Taviche JV acquires a full 100% ownership interest in both the East Taviche and Alma Delia concessions while Pan Am retains a 100% ownership position in the West Taviche concession. The Taviche JV will be entitled to receive a cash payment of US $2.0 million, dependent on certain sale or disposition transactions undertaken by Pan Am in excess of a 70% interest with respect to the West Taviche property. Pan Am has also refunded the final earn-in payment of US $250,000 paid in September 2011. Additionally, the Taviche JV has granted Pan Am a 1.5% net smelter royalty ("NSR") as well as a right of first offer ("ROFO") on all of the East Taviche and Alma Delia concessions based on certain terms and conditions.
This transaction vests a 100% ownership position in East Taviche (7,470 hectares) and Alma Delia (38,616 hectares) with the Taviche JV for a land package comprising 46,086 hectares. Now Aura Silver's interest in the Taviche JV is approximately 70% representing 32,360 hectares. In contrast, under the terms of the original agreement with Pan Am, Aura Silver could have earned an approximate 50% interest of 52,340 hectares (or 26,170 hectares) in all concessions, with Intrepid controlling 20% and Pan Am 30%.