Eagle Hill news

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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profitz

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Eagle Hill news

posted on Jul 21, 2009 11:20AM

I've been reading through the Eagle Hill/NOT NR. It looks like developing Windfall is quite a long term project. If I am reading it correctly, it looks like Eagle Hill agrees to pay NOT C$400,000 after they complete an equity financing by 10/15/09. Eagle Hill then agrees to incur exploration expenditures of C$500,000 by 12/2010, C$2,000,000 by 12/2011 and C$2,500,000 by 12/2012.

After the expenditures, they have another 3 years to complete a bankable feasability study (BFS) or take to production. After this, and a few other conditions, (potentially 6 years out, in 2015), NOT then has a 90 day period to decide if NOT wants a 2% net smelter royalty (NSR) or if they want to retain a 25% interest. If NOT decides to retain 25%, then NOT has some financial obligations.

Thus, it looks like it will be a long time before Windfall potentially comes to fruition, (i.e., 2015). It appears that NOT definitely wants to concentrate on MW, Nickel, Eagle 1 area, and chromite for now.

I had a question and hoping someone can help. Could someone please explain how the 2% NSR works. Would NOT get 2% of the gross sales from production? It seems that 2% is a small figure, but if its based on gross, then perhaps it can add up. At this point, I am unsure how a NSR works. I am trying to compare a 2% NSR vs a 25% interest retention.