Ann: Blue Bar Development Approved, page-11

Hi @Dazedandconfused

"CAI is paying $12/t to Hao for each tonne milled. The grade is anticipated to be 1.87g/t = the dirt is worth $182 per tonne - $12 brings the effective grade value to CAI down to 1.76g/t."

Yeah-nah. You are forgetting about the reconciliation and profit share adjustment. After adjustment CAI is left with 60% of generated profits. The $12/t is an estimate of what Haoma's 40% profit share may equate to.

After mining is completed at Blue Bar, and all gold sold at spot, the costs of production will be deducted from the revenue generated to arrive at a profit before tax. This is then split 60:40 and an adjustment made against the moneys already paid to Haoma. The main question I have, is whether or not the share issue is also to be included in that calculation as a sort of down-payment.

All IMO.