Zotron;
I’ve been investing in gold/silver miners for the past 35 years.
It’s hard to find a JV deal as shitty as the one the AURYN signed.
Having the property tied up for 5 years (actually 5 1/2 years) with absolutely NO gain for AUMC.
No Funds - As a minimum, usually a junior will receive at least compensation for permitting costs.
Typically also a signing bonus, even as small as $50,000.
Yearly payments, these might be in the range of $75.000 to $100,000 or more.
No Exploration - I actually can’t remember seeing a JV deal where the major was not required to spend a minimum on exploration for each year, until the year when the full % could be obtained. ( In this case year 5, $7M )
No Investment in AUMC - Most majors will invest in some shares of the junior. Typically, this would be to ‘lock in’ a 10-19.99 % share of the company’s float. This is done to make sure that if there’s a significant find, then the major will profit if there is a buyout of the junior.
My previous post :
"The property is tied up for 5 years with $0 minimum investment required during that time up until the end date last year, then the $7M.
… Please note, the currently named LDM project is a consolidation of over 3,000 hectares and is significantly larger than what has historically been known by our shareholders as the LDM (see the graphic included below.) …"