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Canasia Industries Corporation V.CAJ



TSXV:CAJ - Post by User

Comment by firestartermon Dec 08, 2009 11:13am
174 Views
Post# 16564483

RE: Something BIG in the pipe ...Questions

RE: Something BIG in the pipe ...QuestionsWell I went back and read their agreement with Kinross.   It would appear the deal will cost K about 1.3M USD in Cash plus royalties.

Sep 18/2008                                                                $40,000
Dec 31/2009                                                                $25,000
Dec 31/2010                                                                $50,000
Dec 31,2011                                                                $50,000
Annual $100,000 Payments for another 12yrs     $1,200,000   
                                                                                        ---------------
                                                                                        $1,365,000


Plus 2%NSR


Question:  Why would they do a buy out if they could just pay this chump change.  I assume a buyout would cost them much more?  Real question is what is the 2% worth I guess. 


GLTA!
Thanks for any help!

F
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