RE:Can't Believe Anything Jimbo SaysThey will blow the rest of the money because they want the rest of their shares coming in June 2016. Not like they have anything better to do. Greedy on the shares and stupid on the royalty.
This type of deal puts the management team, the Project Generator team and the shareholders in a conflict of interest. Why negotiate for an equitas royalty of 2% if something is found? Just do a sweetheart deal and get the royalties flowing to the Project Generators.
2% would be about the max that a mining company would tolerate on an operating mine.
Effectively what you have is a public company acting as an agent for the Project Generators. Shareholders get daily feedings of pablum and bunkum from Matty - not even a half-priced pint for the poor dumb dumbs.
locogringo wrote: In consideration for a 100% stake in the Property, Equitas has entered into an option agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd., collectively the “Vendors”.
The Company will issue 7,999,998 shares over a 36 month period of which 2,666,666 is due upon exchange approval of the agreement. Pay $80,000 over a 1 year period of which $30,000 is due upon signing and grant DG Resource Management a 2% Gross Overriding Royalty (GORR) in the Property. The transaction is subject to acceptance by the TSX Venture Exchange.