You are correct. Excess is the word used in the news release, but my interpretation is multiples of that amount based on the historical, not necessarily proven, but previous reports of what potential reserves might be hidden in those rocks.
I don't see a mere $100M or just over that number as an amount that could support such suppositions as have been historically proffered by AC Howe and others upon reliance on whose report, I am almost certain, originally brought this group of would be gold miners (referring to Les, JJ, Chapin and others) to pursue these claims on the ADL. Experts who have offered their opinion of the costs of exploration of "world class" properties today have given hints of what the real costs of exploration and discovery could be. If my memory serves me right, one such expert suggested those costs would necessarily be in the realm of my estimates.
So in other words, if in fact these previous historical reports have even a partial degree of accuracy, based on modern day costs of exploration, in my humble opinion, it will most likely require multiples of $100M to fully discover what lies in the belly of the beast, we affectionately call ADL.
A scenario referred to by a poster is also possible where after spending a sum to prove the reserves with industry accepted reports, this group may in fact bring in even bigger fish to join and complete the exploration, or as is sometimes the case, the option holder may stop spending time and energy on the exploration after hitting gigantic milestones, and simply trade their option to a bigger fish.
Given certain set of circumstances, it may well be in the best interest of Auryn, once an industry accepted generated report confirms a "world class" deposit of poly metals, and those reports show a high enough potential reserves for a major miner to be interested, then why not take your profits, sell the option to the bigger fish and run, not walk, down that mountain to the bank.
That of course would be comfortably quite a ways down the road, perhaps as long as one, two or three years from now. I am simply guessing at the above. No one relies on my "expertise" to plunk down their yankee dollars on this penny stock. So, I stand in position as all of you. We wait for results that are finally possible with this group of experts who apparently have committed their resources to this project. That says quite a lot, a lot more than ever before in Medinah's sordid history. Now let's see if the Letts family comes through.
I don't know what implications or ramifications the $3M penalty has on both parties. I think this is a boiler plate clause that every high value contract should have. So, it seems, both parties and their respective attorneys have agreed this poultry sum is simply a symbol of good faith on the part of those entering into this agreement.
The part I don't really get is the term "enforceable" they used with respect to the $3M penalty. What in the world does that mean. If one agrees to pay a penalty for non performance, then that legally drafted, mutually drafted agreement to pay a penalty is enforceable in a court of law, should it go that far. So, do they mean each party will deposit in escrow a valuable security or securities, or provide a bond up front, or pledge an asset that will be held by a third party neutral to both, who without further instruction, upon default of one or the other party, is to release the $3M to the damaged party? I don't know how that penalty is to be enforced, if one side invokes that right under the agreement.
What's your interpretation? Thanks in advance.
