Without getting into the specifics of the contract, your bottom text is accurate. If Newmont does NOT back-in, then they keep a royalty and we pay them $1.5 mm cash


On 2/8/10 8:56 AM, "Tom Smith" <thomas340@cox.net> wrote:

Hi Chad,

I am not sure if my comments below are correct. Does VIT have to complete a feasibility study in order to trigger an event that requires NEM to make a decision regarding their back in rights, or are my comments below correct?

Thanks for giving me some clarity on this.

VIT will be filing a "Notice" (Legal Document) with Newmont Mining soon. From the date that NEM receives "Notice" they will have 90 days advise VIT whether or not they will exercise their back-in rights. If they choose not to exercise their back-in rights then VIT will have to pay NEM some cash and agrees to pay them royalties in the future. IMO, NEM will exercise their back-in. Should that occur, I would expect a lot more surface drilling to occur at Cove preceding eventual underground drilling. Bottom line, we should have some news regarding a back-in by NEM by the end of June.

tom