Greetings ZENophiles:

After reading the GMP prospectus (thanks to Eric at GIL) I noted the following paragraph -

"The Albany Project has two NSR royalties on the deposit which can both be partially repurchased. Payment terms are a 2% net smelter return royalty to Eveleigh Geological Consulting Inc. (‘EGC’ related party) granted by Cliffs Natural Resources Exploration Inc. (CNRE) in 2010 for the geological exploration model developed by EGC. 1% can be purchased at any time for $1,000,000 leaving a 1% NSR. An additional $250,000 is due to EGC upon commencement of the first pre-feasibility study. A 0.75% NSR royalty was granted to CNRE, during the 100% purchase of the Albany graphite deposit, of which 0.5% can be purchased at any time for $500,000. Zenyatta must issue 250,000 shares to CNRE upon completion of a pre-feasibility study and another 500,000 shares upon completion of a feasibility study."

So, if we get to to the commencement of the pre-feasibilty study (PFS) we need to send $250K to EGC (which I assume means AE). After the PFS is complete, we need to issue 250K shares to CNRE and issue another 500K shares to CNRE after the completion of the feasibility study (FS).

ZEN can also buy 1/2 of EGC's net smelter royalty (NSR) for $1M and can buy 2/3 of CNRE's NRS for $500K.

Am I correct to assume that these arrangements will be activated if ZEN is sold prior to the issuance of a PFS and/or an FS?

Are these arrangements reasonable enough to not be a factor in the future share price (i.e. share dilution)?

Will additional financing be needed to meet these goals if ZEN pursues the PFS (I have heard that they have enough $)? How about if they go for a FS?

- panamax