conditions precedent, page-80

great comments there susieq.

I've googled metal streaming financing and here is a good insight into what we are looking at.

http://www.goldroyalties.ca/metals_streams_royalties_VPPs_reserve_purchase_agreements.php

If they are going to use this form of financing, then raising $12m will be easily accommodatable for us. The only slightly concerning aspect is that we don't have reserve status on our JORC.

Just say they take $0.50 cents per pound of copper produced.
$12m / $0.50 = 24m pounds of copper or 11Kt of produced copper. That is about 1 years production.

Or @ $0.25 per pound. $12m / $0.25 = 48m pounds or 22kt of produced copper. Thats 2 year production.

It still leaves a juicy margin given the all up costs are $1.10 per pound for AN.

I guess the unknown is how much "trail" will they want for providing $12m of funding. Will it be double what they inject (ie)$24m. Assume it is $24m, at $0.50 royalty per pound will equate to 2 years production.

Not really sure how a bank would see a royalty stream financing arrangement as equity, given it is a "take" on revenue, but who gives a rats if it gets the mine up pronto!

Have a great weekend folks. This is getting better by the day.

HB