PublunchmanThe two points:2) Royal Falcon can elect to spend a...

Publunchman

The two points:

2) Royal Falcon can elect to spend a further US$3 million to earn an additional 24% interest in the Falun and Bersbo Projects.
3) Drake will have the right to fund their respective share (49% or 25%) of project exploration, feasibility, mine development, or mine development costs when these funding requirements have been met.

Are difficult to interpret. One seems to cancel out the other.
"Royal Falcon can elect" to acquire more.
"Drake will have the right" to fund their share.

Who has FIRST rights ... from my experience in past deals, the company holding the leases (Drake) decides what it will do. Either 1] start funding, or 2] allow the next % move.

Either way for the next 3 years at least, Drake is free-funded. If they elect to go to 25%, then Royal have to spend ANOTHER $3 million on the projects.

After that,
Drake will have 25% ... and Royal 75%
GMR have 35% of Royal, so will still only be exposed to around 26% of the project ... pretty much the same as Drake.

As you say GMR have other potential possibilities with Royal Falcon.