silver, San did give themselves the right to float 35 million shares at their option which was mention prior the TSE listing. Other points of interest from the 3 rd qtr financials,
During the quarter, the Company purchased goods and services for the sum of $3,499,081 (September 30
th
, 2009 -
$2,304,279) and for the nine month period ended September 30
th
, 2010, the Company purchased goods and services
for the sum of $7,926,714 (September 30
th
, 2009 - $5,909,738) from Wynne Mining Ltd., Wynne’s Place Ltd., Hotel
San Antonio, and Wynne Drilling Ltd.,...........Royalties...
Annual royalties on the 2007 royalty sale will be payable at rates ranging from $72.05 to $169.89 per ounce of gold
produced during the period of the agreement to the later of December 31
st, 2017 and five years after the end of
commercial production from the mine. Annual royalties on the 2006 royalty sale will be payable at rates ranging from
$29.26 to $268.71 per ounce of gold produced during the period of the agreement to the later of December 31
st, 2016
and five years after the end of commercial production from the mine. Annual royalties on the 2005 royalty sale will be
payable at rates ranging from $5.00 to $49.51 per ounce of gold produced during the period of the agreement to the
later of December 31
st, 2015 and five years after the end of commercial production from the mine. During the term of
the agreements, the Company is entitled to have amounts held under the restricted promissory notes used to make
payments under the royalty obligations..................
Restricted promissory notes and royalty obligation (continued)
Under certain circumstances, 100% subsidiaries of Rice Lake Gold Corporation will have the right to purchase (“Call”)
the equity of the holder of the royalties or right to receive the royalties at an amount no greater than the fair market
value thereof at the time of the Call. The Call price will be paid from the balance owing to Rice Lake Gold
Corporation under the promissory note. Under certain circumstances, the purchaser of the royalties will have the
right to sell (“Put”) their interest in the royalty to the Company at an amount no greater than the fair market value
thereof at the time of the Put. However, such right is subject to the subsidiaries of Rice Lake Gold Corporation’s preemptive
right to exercise the Call in advance of any Put being exercised and completed.
In addition to the royalty, Rice Lake Gold Corporation has granted a net profit interest (“NPI”) for the years 2011 to
2017 inclusive. Under the commitment, minimum gold price thresholds of $875, $1,075, and $1,275 per ounce
trigger NPI levels of 6%, 6.75% and 7% respectively. Under the 2005 and 2006 commitments, minimum gold prices
or $875, $1,075, and $1,275 per ounce trigger NPI levels of 1%, 2%, and 3% respectively. No NPI is payable until
Rice Lake Gold Corporation recovers its capital invested including reserve and interest charges.
