Ann: COB: JV Withdrawal Notice Served, page-6

Amigos, as big Arnie would say to COB: “You move too fast in a crisis situation”. The Exploration Farmin JV agreement does not mention the 2 % smelter royalty. That JV agreement is about exploration, that’s all. There is another agreement called the Royalty Agreement. Both agreeements are dated 31st October 2016 and signed by O'Connor (BPL) and Biancardi (COB). The Royalty Agreement binds COB to paying the 2% smelter royalty for the life of the mine. The announcement of the two separate agreements was on 4th November 2016. I've copied the relevant paragraphs below. You can read and be your own judge. (Also for some fun, have a look at big Arnie and Danny in action.)



From announcement on 4^th November 2016:
“BPL and COB entered into a farm-in joint venture agreement (Farm-In Agreement) on the 31 October 2016 for COB to acquire 100% of Thackaringa via achieving set milestones over a defined period. In addition, BPL and COB entered into a Royalty Agreement (Royalty Agreement) where COB agrees to pay a 2% net smelter royally (NSR) on all future cobalt production.”

“Royalty: COB grants BPL a 2% (NSR Rate) net smelter royalty (NSR) on all cobalt produced from the Tenements for the life of the Project on and from the date on which commercial production first commences.”