Of course, it remains to be seen what a cash-poor company such as Uragold can do with 32 Claim Units of Beauce. One would think (and hope), using modest means, they can come up with enough of a case and come up with enough sizzle to stimulate an influx of investor money to further their development plans. In any event, they’re presently dedicated to a task that’s a very low Fancamp priority. Making a major discovery is a long-shot. Depending on Fancamp to lay out the money and make the strong commitment is a worse long-shot.

Given that, presently, we know as little as we do about the true potential of Beauce, the deal with Uragold appears to be a clear win (so far as it goes) in one of our minor projects. There are two facts (very favorable to Fancamp) that are not part of the Press Release but are important (within the framework of what has been, to us, a minor project).

Not in the Press Release, Important Fact #1) The NSR in the deal is 3.5%. But the NSR benefit we derive is a whopping 5% because the 1.5% NSR commitment to the original property owner that Fancamp presently has will be assumed by Uragold. To be sure of this point, I asked Michael D’Amico (at Investor Relations), to look into it. He got back to me and confirmed that instead of Fancamp being on the hook to pay a 1.5% NSR, the deal will cancel that obligation and replace it with Uragold paying us the 3.5% NSR.

So far as Fancamp, the net effect will be: Instead of a 1.5% NSR flowing out; a 3.5% NSR will flow in (if and when, there’s production). As a side note—without Uragold taking over—in the deal we have with the original owner, we wouldn’t be able to get rid of our entire original 1.5% NSR obligation. As it is now—without the Uragold deal—all we can do is get rid of 1% of the 1.5% by paying the original owner one million dollars.

Not in the Press Release, Important Fact #2) Our Beauce properties presently consist of 419 Claim Units (many acquired through staking). So, of course, after Uragold takes over 32 Claim Units, we will retain control of 387 Claim Units (in which we had no NSR obligation in the first place). Of course—in terms of the number of Claim Units—the deal with Uragold calls for us to give up less than 8% of our Beauce interests (retaining the other 92% plus).