Ann: ESR secures Strategic Investment to advance Timor-Leste, page-30

Hello. Yes. Its difficult to understand the royalty. Say ESR produced 500,000 tonnes over 5 years sold for US$300/t. The royalty might be US$375,000. That's a large gift for investing $350,000.

Say the investor invested $5M and ESR produced 500,000 tonnes over 7 years sold for US$300/t. The royalty might be US$1,050,000. That's a reasonable bonus for investing $5M.

But the 0.25% royalty for investing a mere $350,000 is difficult for me to understand.


On and from the Tranche 1 Completion Date, the Company
grants the Subscriber (or its nominee) a 0.25% gross revenue
royalty on the sale of manganese ore extracted and
recovered from the Timor-Leste Project (“Royalty”). The
obligation to pay the Royalty continues for 5 years from
commencement of first production. In the event the
Subscriber subscribes for and is issued $5,000,000 worth of
Shares under the Tranche 2 Subscription, the percentage of
the Royalty will increase to 0.5% and the term of the Royalty
will increase to 7 years from commencement of first
production.