RE: RE: RE: RE: RE: RE: McEwen considers selling t Mouserman,
If MUX is successful in their efforts to sell Los Azules prior to completing a bankable feasibility study TNR would be spared from a large financial burden. The burden being, coming up with the cash for its portion of exploration, etc., for the northern portion of the project – If TNR elects to limit itself to 25% of the northern portion of the project.
For the sake of TNR shareholders, I would like to see MUX successfully determine the validity of the resources they believe exist at the 700 meter level. Said discovery and measurement of same will increase copper and (?) resource total and at the same time increase the value of TNR’s share of the project.
Below find details of restored Los Azules back-in rights for TNR. The royalty you mention must be in reference to the ‘Net Smelter Royalty’, (NSR). I’m not positive but its possible NSR could be negotiated in lieu of outright cash, for TNR. TNR management mentions an ‘industry standard NSR’; without seeing the contract it would be impossible to judge its value, (with such a contract the details determine the value to the Company) – For anyone reading this, the pros and cons of such a contract are added below, (with a link) – I question TNR management’s willingness to wait a minimum of a couple years before seeing any return on a royalty.
Regarding the short positions increase; they’re either fools or they will be called geniuses when all is said and done. Of the approximately 160 million TNR shares, only 31+ million shares are available to retail investors; that makes for a small number of shares available for trading. If an analyst were to suddenly ‘discover’ TNR’s value and announce it in the form of an alert bulletin, or whatever, TNR’s share price could easily climb and in the process bury the shorts. I wouldn’t make a bet on the shorts success.
TNR''s Back-In Right (from MUX news release)
TNR will retain their Back-in Right for up to 25% of the equity in certain claims comprising the northern portions of Los Azules. These northern claims currently represent approximately 62% of the known resource at Los Azules. This 25% interest, when taken in the context of the whole property, would be currently equivalent to approximately a 15% interest of the total estimated resources at Los Azules (Canadian NI 43-101). This interest could increase or decrease depending on the location and size of future exploration results. The Back-in Right is exercisable after the completion of a bankable feasibility study. To exercise TNR must pay two (2) times the expenses attributable to the back-in percentage (ie. paying 2 x 25% all of the costs attributable to the claims comprising the northern portion of the property). Upon backing-in, TNR may elect to continue to participate in the project or be diluted down to a 0.6% NSR on the same claims comprising the northern portion of the project.
https://finance.yahoo.com/news/mcewen-mining-inc-los-azules-183727253.html
TNR''s Back-In Right (from TNR news release)
The settlement restores a 25% back-in right to TNR which is exercisable following the completion of a feasibility study. The back-in right allows TNR to back-in for 25% of the northern part of the Los Azules property, which McEwen Mining has said contains the largest share of the known resource at Los Azules.
In addition, TNR receives an industry standard Net Smelter Royalty of 0.6% and 1 million shares in McEwen Mining (information about McEwen Mining can be found at https://www.mcewenmining.com and on Sedar at https://www.sedar.com). The Net Smelter Royalty is over the northern portion of the property and is triggered if TNR chooses to back-in for 5% or less or is diluted below 5%. In return, TNR will discontinue its claims and transfer to McEwen Mining the mineral rights to a property called Escorpio IV.
https://www.stockhouse.com/companies/stories/v.tnr/8666509
How is net smelter royalty determined?
A Net Smelter Royalty (or Net Smelter Return) is a royalty that is a certain percentage of the revenue generated by the mine by selling its product, minus the expenses of producing the product, usually with a limit on what can be deducted.
Most royalties include more deductions: the costs of building the mine and infrastructure, the cost of exploring to find the deposit, the cost of repaying the loans needed for construction, and so on. It's possible for a mine to operate for years (indeed, theoretically possible for it to go its entire lifetime if its not making much money) without paying a royalty.
Most examples of an NSR, on the other hand, either don't take those "sunk costs" into account, or have a limit on how much of them can be used as deductions.
https://wiki.answers.com/Q/How_is_net_smelter_royalty_determined