RE:RE:RE:RoyaltyRed Moon /Atlas was a subsidiary company of Vulcan when its structure was formed as a public company. The 3% royalty on SALT's production was and is payable to VUL.
Useualy when a NSR is negotiated with a company who has an option on a property, a buyout clause is established. Here, because at the time it, Red Moon, was a subsidiary, that, to my knowledge was left open-ended.
So assuming Salt is bought, goes into production at 6 million tons per annum, at say $90 ton average, (5 year view) means revenue would be $540 million annually thus making the 3% worth over $16 million per year to VUL.
That kind of revenue stream is worth big bucks over the life of the mine, (forever) to many classes of investers. Pension funds, private equity op's, even royalty companies that do metals! What do they care? Cash flow is cash!!!
Going to be interesting on how Patrick and Co milks this cow....