Correction to my previous post. I said “The original agreement...

Correction to my previous post.

I said

“The original agreement had ORR moving to a 25% interest on completion of the DFS and 51% dependant on whether the NPV of the DFS was above or below US$200 million. The previous option allowed ORR to move to 51% based on a sub-$US 200 million NPV for the project and staged payments totalling US$15 million which included a NSR capped at US$10 million.

I can’t see how they can say that ORR have satisfied the terms of the previous agrement to move to 51% when the DFS has not been completed (I don’t recall seeing the DFS?). In any regard they can get to a 100% cheaper by this agreement than the old agreement (ie they’ve shaved $US5 million off the upfront price but added $US5 million on top of the capped royalty).”

The previous deal would have cost US$15 million to get to 51%. So this announcement seems to imply they have shave $US12 million off this part of the agreement.

The US$7 million for the remaining 49% is new and seems to value the whole project at only ~US$29 million with the NSR.

Acacia have really rushed out the door. Very interesting to see where this goes from here. Esh