Am I wrong about the specifics of water royalty due date? IC Potash and Cartesian enter into Letter of Intent regarding Ochoa Deposit
T.ICP | August 8, 2017
EXCERPT FROM NEWS RELEASE:
"A water royalty equal to 75% of the revenue of ICPUSA derived from all sales of water and/or water rights to an
aggregate of USD $12.2 million.
The water royalty will be backed up by a Mining Royalty of 1%, in the event that the full USD $12.2 million is not received by December 31, 2022. ICPUSA will agree to use all reasonable commercial efforts to source and enter into agreements to sell the water resources as soon as reasonably practicable. The Board of Directors of ICP note that water is in great demand in New Mexico and Texas due to the large oil and gas fracturing industries in the United States."
Read more at https://www.stockhouse.com/news/press-releases/2017/08/08/ic-potash-and-cartesian-enter-into-letter-of-intent-regarding-ochoa-deposit#LLr82qw8tqDKuKvw.99
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This indicates to me that, yes there will be the additional cash $1.4M paid on January 8, 2018...but it looks to me the anticipated $12.2M will not occur as a lump payment, but rather it is paid over the next 5 years ($2.44M/yr). Further guaranteed by a 1% mining royalty, whichever is equal to, over the next 5 years...completing December 31, 2022...which after that time, ICPUSA will then have right to market and sell the water resources as of January 1, 2023.
This aggregate $12.2M completion date of December 31, 2022 is not included in any of their future dated news releases.
Investors may also consider extended date of warrant exercise and corressponding discount applied to those warrants from $0.11 to $0.08, to expire at the end of 2018Q1.
I am not bashing...I was looking at investing and doing my dd...I thought it prudent to share my dd and get feedback from others on this board.