Ann: Capital Raising, page-12

Don't be surprised to see the Bullabuling gold royalty monetised into a lump sum...its a hefty one ($20 per oz, $30 per oz for 1st 400k oz produced) so the Chinese will be anxious to get rid of it, or a specialist royalty company could be willing to acquire it.

Based on the 2013 study, the royalty on that production scenario is worth $17M on an at market basis. Of course if monetised as a lump sum there'll be a discount applied, so could fall in the $8-10M range. However the actual resource the royalty is on is much larger than the 2013 study, its 3.6M oz, so total potential royalty value at market is $76M...so the discounted lump sum value would be higher, though a higher discount applied to the royalty on the ozs that have not yet been part of a production study.

Not really an expert on how royalties are valued by potential acquirers, but would not be surprised to see a lump sum payment in the $20-25M range for the gold royalty alone.

Cdchi1