Ann: Strategic Investment by Lithium Royalty Corp, page-37

I noted that some thought the deal was too much in favour of LRC in terms of the royalty payments being ongoing, but would we really begrudge them taking $2.5M royalty from every $100M gross revenue? I hope they get very rich from it; then so will we! It'd still leave a nice profit for CXO and once capital built up we may well be developing a project outside of the Finniss umbrella anyway - perhaps Barrow Creek. The way I see it, this arrangement, which, let's face it, is initially a gamble for LRC, helps to get us to the profit-making stage. Some have suggested they could have raised $10M in a SPP at 10c. Who would have paid 10c? And $10M at 4c would have meant another 250M shares. Any capital raising option is painful in some way but I'm quite happy with this chosen formula. It gives me a bit more confidence, too, after figuring that LRC must have run their rule over CXO's prospects very carefully and seen a potentially profitable business before putting up their cash. I should think most likely the majority of shareholders will take up their new shares in the SPP. I expect there might be about 10% availability per shareholding considering some won't participate.