The consideration for the acquisition is the granting of a 10-year Net Smelter Returns Royalty, at 3% for the first 200,000 ounces of gold and 2% thereafter. During the term of the Net Smelter Returns Royalty, if Green Swan files a NI43-101 compliant resource estimate of at least one million ounces of gold grading at least 2 grams of gold per tonne, Green Swan will at that time immediately owe the vendor a one-time payment of USD$250,000
They got smelting returns and IF they ever get a 43-101 they will get some cash.
If they don't get a 43-101 then Dan gave shining tree away for nothing. After all without a 43-101 they won't be mining and without mining there will be no smelting.
This wasn't even a deal it was unloading a claim they have no intent or ability to mine.
It even said so in the PR....
Green Swan purchased the Otto Assets from an arm's length prior owner who encountered challenges advancing exploration on them. One of the difficulties was an inability to enter into economic exploration agreements with local communities including First Nations. That prior owner had applied for a permit to drill from 11 to 20 pads, conduct mechanical excavation, and carry out other mining-related activities, which permit has been stalled for some time in the Ontario Ministry of Northern Development and Mining. The Otto Assets are on “Special Status” pending the resolution of the permit application, but in Green Swan's opinion it was highly unlikely the former owner would have been able to successfully advance its permit.
