My interest in Fancamp is recent. One of its relationships that caught my attention is the nature of its connection to Argex Mining’s La Blanche project, the terms of which are summarized on Fancamp’s website, (at the following link):

http://www.fancampexplorationltd.ca/FNC_Property_Agreements.html

Does anybody have a clue as to the value of the clause which gives Fancamp the option to “buyback up to 50% NSR for $1.5 M advance royalty of $100,000 a year beginning at the end of year 3 (October 30th 2012)”? Referring to its resources (78% of which are TiO2), Argex is not shy about proclaiming, (on page 7 of its “Corporate Presentation,” dated July 2011), in large bold print “Total Estimated In Situ Value $24.55 Billion.” Beyond page 7, on pages 11, 14, A1-1, A1-2, A1-3, and A1-4 (at the following link), Argex draws remarkable comparisons from its reported resources:

http://www.argex.ca/documents/ArgexPresentation_AL1August2011.pdf

Naturally, I can’t help but wonder, how much of the “total estimated in situ value $24.55 Billion” are believable bankable assets? How far off can the “estimate” be? How much will eventually wind up on Fancamp’s side of the ledger? Fifty percent of the yearly return of a $24.55 Billion asset possibly may add up to something. I haven’t found, on this Fancamp Hub, any discussion of this.

Iluka Resources’s (ASX:ILU) main resource is Titanium.
Argex’s Mining’s (TSX.V:RGX) main resource is Titanium.
Fancamp Exploration (TSX.V:FNC has other resources, which possibly exceed the value of its Titanium.

Yet its Titanium, by itself, is more plentiful than its rivals, even without considering its interest in Argex
(possible 50% of its NSR, plus ownership of 9 million of its shares, plus a seat on its Board of Directors).
It’s hard to take the arithmetic at anything but face value.
What am I to make of the following numbers (which, for Fancamp, only include its 48.7% interest in Magpie by itself)?

Iluka Share Price $15.76, 48 kg TiO2 per share (from 6.00% grade ore).
Argex Share Price $0.40, 65 kg TiO2 per share (from 18.78% grade ore).
Fancamp Share Price $0.30, Magpie only est. 814 kg TiO2 per share (from est. 11.00% grade ore).

48 kg TiO2 per share costing $15.76 ILU
65 kg TiO2 per share costing $0.40 RGX
814 kg TiO2 per share costing $0.30 FNC (from Magpie; leaving out other properties and its Argex NSR).

One dollar buys you 3 kg of in situ TiO2 from Iluka.
One dollar buys you 163 kg of in situ TiO2 from Argex.
One dollar buys you more than an estimated 2,713 kg of in situ TiO2 from Fancamp.

The Fancamp numbers come from the 1.1 billion ton estimate for Magpie on Fancamp’s website.
Also factored in were the 11% estimated ore grade and Fancamp’s 48.7% Magpie ownership.
Not included are any properties besides Magpie.
Not included is the Titanium Fancamp gets from the 9 million shares of Argex it owns.
Not included is Fancamp’s 4% of Argex’s NSR, which it has an option to increase to 50%.