Ann: $6m Funding Agreement For The Sale of Kanmantoo Royalty, page-46

Can someone please confirm:
HGO can now spend the $6m to advance the development and if they never actually get into production they have no liability to pay the money back to Freepoint (FP just lose their doe?). ?

FP must think the project will get into production then I guess? (And they would know given who they are)

I am guessing the $6m lets the project advance for some months then FP will provide more finance when the Cu price and world economy is looking rosier (project viability more certain).

The high return for FP on the $6m looks reasonable given the high risk (just imo).

HGO have difficulty gaining finance due to the inherent project weaknesses:
- small Researve / resource
- Relatively high cost of production
- Short mine life
(Just imo)

I’m a keen follower of hgo but see it as speculative (bought at 9 and 8 cps earlier this year).