AW1 General Chat, page-3581

I agree with you Bunn that the company's primary focus will now be on resource expansion to meet Taurus' performance target of 400,000 tonnes of contained copper with at least 1% copper.

IMO it would be unwise not to prioritize this! Moving forward I believe that this resource requirement will define AW1's operational objectives. Additionally, they will also want to secure the additional funds by completing the Pre-Feasibility Study (PFS) and submitting the relevant permits as soon as possible. This means a lot of the necessary work will likely occur simultaneously in order to be immediately ready once the 400,000-tonne target is achieved.

While I don't know the full terms of the Royalty Agreement, it's possible that the project could be profitable at a lower tonnage than 400,000 tonnes, allowing AW1 to begin an earlier DSO operation in order to get some cash flow while continuing resource expansion operations, By doing this they could begin paying the royalty before receiving all the funding, while still continuing exploration activities with the aim to hit the 400,000-tonne target at a later period. By do so I imagine that they could then still get the additional payment retrospectively.

I understand though that this would not be a preference or even a desirable option since David has said clearly that the larger resource is the one that he wants to permit rather then having to re-permit later. That said I thought it was an interesting idea to throw out as Plan B alternative route to commercialization if we start to run out of funds before researching the 400K target in order to avoid further dilution and instead self fund through cash flow until we reach the larger resource requirements.

If anyone knows is the agreement evens allows for such a scenario I would love to know?