RE:strategyFreeport is way ahead of what they have committed to. They could stop for a long time and still meet the requirements in the agreement below.
Under the terms of the
earn-in agreement, Freeport may earn an initial 55% interest in Rakita by investing US$3 million in
exploration (US$400,000 committed for year one) over a four-year period. Once Freeport has earned its
initial 55% interest, it may become the project operator and may elect to earn an additional 20% interest
(for a total interest of 75%) by completing a scoping study within four years, a pre-feasibility study within
eight years and a feasibility study within thirteen years. The Brestovac portion of the Brestovac
Metovnica property is subject to a 2% net smelter return royalty on gold and silver and a 1% net smelter
return royalty on other minerals with Eurasian Minerals Inc. (“Eurasian”) pursuant to a royalty
agreement (“Eurasian Royalty Agreement”). The Durlan Potok portion of the Jasikovo Durlan Potok
property and the Metovnica portion of the Brestovac Metovnica property are subject to a 0.5% net smelter
return royalty with Euromax pursuant to a royalty agreement