Hmmm, not so sure about this one. Any comments... "BEACON...

Hmmm, not so sure about this one. Any comments...
"BEACON EXECUTES OPTION TO PURCHASE JAURDI GOLD PROJECT Beacon Minerals Limited (Beacon or the Company) is pleased to advise that the Company has executed an exclusive option to purchase the Jaurdi Gold Project comprising Mining Lease M16/529 (ML) from Fenton and Martin Mining Developments Pty Ltd (Fenton and Martin) (Option to Purchase Agreement). The Jaurdi Gold Project is located 35 kilometres north west of Coolgardie and is close to infrastructure, including public and private road access to Coolgardie and Kalgoorlie. Under the Option to Purchase Agreement, Beacon will have 110 days to undertake due diligence on the Jaurdi Gold Project and will include the following: o A detailed survey of all previous work on the ML, which includes 114 RAB/RC drill holes by the current and former tenement holders; o Collation and audit of the data within the BM Geological Services Pty Ltd (BMGS) database. BMGS have already undertaken work on the project for current and previous tenement holders; and o Design and implement a drill program on the ML to:  Drill check holes against existing holes;  Delineate the extent of the gold mineralised system within the ML; and  Compile a resource inventory. o During the option period Fenton and Martin can continue to mine ore on the tenement up to a maximum of 20,000 tonnes. The mining of this ore will not materially affect the resource tonnes or ounces and will provide valuable information for Beacon’s decision to exercise the option. The key terms of the Option to Purchase Agreement with Fenton and Martin include the following: a) Beacon will pay $100,000 to purchase the ML; and b) Beacon will pay an initial royalty of $90 per refined ounce of gold for the first 10,000 ounces produced from the tenement and $80 per refined ounce of gold produced thereafter. A pre‐paid royalty of $900,000 will be paid to Fenton and Martin upon the transfer of the tenement and this amount will satisfy the royalty payments up to this amount. Appointment of Project Manager The Board of Directors is pleased to advise that Mr Alex McCulloch has been appointed Project Manager of the Jaurdi Project for the due diligence period and, if the option is exercised, to Manage the project through to production