GREY:ADEXF - Post by User
Post by
HVAN1on Sep 26, 2012 7:13pm
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Post# 20418090
Ownership
Ownership Now that AXI has filed the feasibility study on SEDAR it now officially owns 75% of all properties held in the joint venture with Roche Bay plc (including Roche Bay and Tuktu).
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How does AXI gain 100% of Roche Bay and Tuktu? Very simple: just announce a production decision. The difficult part: once a production decision is announced Roche Bay plc will be due a cash payment of $600K this December. Otherwise the rent payment stays at $275K.
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Regardless of a production decision the rent rises to $1 million per year starting in 2013. Roche Bay plc negotiated the a great royalty deal: a 6% royalty on concentrate production and guaranteed $1 million annual royalty payments whether production is reached or not. Can't beat that.