RE: RE: Tuktu royalities https://www.rochebay.gi/RB_Annual_Report_2011_v22.pdf
The Roche Bay plc annual report makes the royalty situation absolutely clear:
"In 2007 Roche Bay plc signed a joint venture agreement with Advanced Explorations Inc. (AXI) to develop the Eastern properties. The agreement covers Roche Bay’s leases near Roche Bay harbour and additional land within an Area of Mutual Interest, including the recently-discovered Tuktu deposits and several other unexplored targets.
Roche Bay currently owns 50.1% of the joint venture with AXI, but in April granted AXI a new option to complete a full buyout by August 5, 2011.
Terms of the buyout option include a C$22.5 million cash payment and a gross overriding royalty (GOR) to Roche Bay of 1.875% on iron products and 3.9% on precious metals.
If AXI does not exercise the buyout option, AXI must advance the development of the property to achieve specified milestones and pay increasing rent each year to Roche Bay.
Roche Bay is fully carried to production with no requirement to manage development of the mineral assets or to repay AXI for advancing development of the property."
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Mr. $3 Billion NPV is dead wrong again. The joint venture agreement between Roche Bay plc and Advanced Explorations applies to all properties within the Area of Mutual Interest, including Tuktu. The 6% royalty in that JV agreement, which applies to the whole Area of Mutual Interest, has not been bought out.
AXI's property interest in the Area of Mutual Interest properties has risen to 75% with the filing of the feasibility study.