Ann: Ramu Project, page-4

Hig has among its options for Freida an option for a 3% Net Smelter Royality for the life of the mine, 30+ years. This is potentially very lucrative and can be onsold to a third party, and we do not have contribute anything.

A definition of NSR is

.Net Smelter Return (NSR) is the net revenue that the owner of a mining property receives from the sale of the mine's metal/non metal products less transportation and refining costs. As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. The royalty is paid in variable or fixed payments based on sales revenue received by a mining operator in return for mining output. It is contingent only on the sales price and quantity of product sold.

I think also insurance and a few other little things are included.

If from memory Freida produces 270ktpa copper and 250kozpa gold .....then the NSR would be a very handy amount. Someone may wish to calculate it.

Of course Freida production is quite a few years away so any sale would be at a discount . Cutfield Freeman & Co have been advising Hig on the Freida sale for some time now.

This would seem to be a good source of funds for Ramu. No rush, it's still a few years away.