Ann: Theta Gold executes A$110M Term Sheet with Sprott, page-12

Sprott is to advance US$70 million.

At about US$1650/oz less 10% cash received say $1500 x 100,000oz delivered = $150,000,000 USD. Obviously massive upside as gp rises for Sprott.

How many oz is delivered per year?

The Project is expected (what does this mean???) to deliver to Sprott up to 100,000 ounces of gold over its Life-of-Mine (“LOM”), for which Sprott will pay 10% of the gold price per ounce delivered under the stream.

Prior to initial gold delivery, Theta will pay in cash or scrip (at 10% discount to 5 days volume-weighted-average-price (“VWAP”)) on a semi-annual basis, 9.5% per annum interest to Sprott for the funds advanced.

Theta has the option to buy-back 50% of the stream based on a pre-agreed price (what is it?), following which Theta will deliver 2% of the ongoing gold production. This could be huge, give accurate numbers.

Provides the Company the flexibility to manage its cashflow as long as the minimum gold delivery requirements are met.

What are the penalties?

Consider Sprott’s dealings with GPR when GPR withdrew.

It is all about the fine print when there is construction delays, and then later production problems. Terms like ‘expected’ and ‘as long as’ need clarification. Penalties need to be disclosed.