Roche Bay and Tuktu Ownership..... FJG.....one last point if I may concerning ownership and royalties for the Roche Bay and Tuktu properties.
This is a copy and paste from the January 2012 'Independent' Technical Report, detailing the Earn-in and Royalty Options available to AXI. I offer it to you with no opinion or slant, for it is pretty clear on it's own......
In January of 2007, AEI first entered into an option agreement with Roche Bay PLC (RBPLC) and acquired the right to earn an interest in 4 mineral leases located on the eastern side of the Melville, south of the Tuktu Property, which cover portions of the Roche Bay greenstone belt that is now known to host the iron deposits of the company’s Roche Bay Project (see Greenough and Palmer, 2011). The agreement between AEI and RBPLC has been amended on several occasions but throughout this process an “Area of Mutual Interest” (AMI) has been established and maintained that includes the majority of the Tuktu Property (Figures 2 and 3). The current terms of the agreement between AEI and RBPLC apply to all mineral properties owned and acquired by either party within the AMI. As a result, under the terms of an amended agreement (March 31, 2009), AEI currently owns a 49.9% interest in the Tuktu Project. AEI can increase its ownership in the Project Area to 75% with the completion of a feasibility study and to 100% (less Royalties due to RBPLC as described below) with the announcement of a production decision for a deposit on the property. At present, a feasibility study with respect to the Roche Bay Project is underway (see AEI Press Release – September 28, 2011).
AEI and RBPLC finalized an amendment to the original option agreement on March 31, 2009, referred to as the “Definitive Agreement”. Under the terms of the Definitive Agreement, RBPLC is entitled to the following Royalties: 4% Gross Overriding Royalty (GOR) on iron products (such as nuggets) having greater than 90% iron content, a 6% GOR on iron products (such as concentrates and pellets) having less than 90% iron content, and a 10% GOR on byproduct precious metals. AEI has the right to purchase 50% of the royalties described above (except for the byproduct precious metal royalty) by making a payment of $35,000,000 to RBPLC on or before December 31, 2020, plus an adjustment for inflation.