Beth the Option Agreement is quite clear. It recites MDMN to get 15% of the SHARES of Auryn. It does not say EQUITY INTEREST.
Veblen, the two concepts are synonymous. If I own x% of Google, I have an "equity interest".
What is aCOMPLETE MYSTERY is the extent and exact nature of MDMN's participation should this pig ever wallow into production. For an illustration of what I'm talking about, take a look below at the language copied from one of the JVs I linked to yesterday. It's quite unfortunate AURYN and management have chosen to keep this a state secret as this residual is really all we've got. $100MM divided by 1.5 billion ain't a big deal, and it is a "one time" event, so the equity interest and whatever that includes (and doesn't) is the only relevant component when calculating NPVs and ROIs.
0990718 holds its right to acquire an 80% interest in the El Mozo Project pursuant to an option agreement dated June 6, 2014 (the “Option Agreement”), as amended, between 0990718 and the owner of the El Mozo Project (the “Optionor”). Under the Option Agreement, 0990718 may earn an 80% interest in the El Mozo Project by fulfilling the following requirements: Earn in % of El Mozo Project Obligation 15% Paying the Optionor US$50,000 on or before June 13, 2016
35% Fulfilled obligation to earn in 15% Paying the Optionor US$60,000 on or before June 13, 2017
55% Fulfilled obligation to earn in 35%. Paying the Optionor US$100,000 on or before June 13, 2018. Incurred at least US$1,000,000 in exploration expenditures on or before June 6, 2018
80%Fulfilled obligation to earn in 55%. Paying the Optionor US$150,000 on or before June 12, 2019. Incurred at least US$1,000,000 (total US$2,000,000 accumulated) in exploration expenditures on or before June 12, 2019. Issuing US$500,000 of common shares of Goldgroup to Optionor on or before June 6, 2019.
These earn-in obligations must be fulfilled on or before June 12, 2019. Upon successful earn-in on the El Mozo Project by 0990718, the Optionor has the right to convert its 20% interest in the El Mozo Project into a 2% net smelter returns royalty (“NSR1”). If the Optionor converts its interest into a 2% NSR1, 0990718 will have the right to purchase 1% of this NSR1 royalty by paying: ? US$1,000,000 (if estimated mineral resources are less than 500,000 gold equivalent ounces), or ? US$1,500,000 (if estimated mineral resources are equal to or greater than 500,000 but less than 1,000,000 gold equivalent ounces), or ? US$2,000,000 (if estimated mineral resources are equal to or greater than 1,000,000 gold equivalent ounces). Goldgroup acquired all of the issued and outstanding shares of 0990718 in exchange for the issuance of an aggregate of 5,500,000 common shares of Goldgroup to the shareholders of 0990718 (the “Vendors”) pursuant to a share exchange agreement with the Vendors (the “Share Exchange Agreement”). None of the common shares of Goldgroup issued pursuant to the Share Exchange Agreement have been or will be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. In addition, Goldgroup granted to the Vendors an aggregate 1% net smelter returns royalty (“NSR2”) on Goldgroup’s ownership portion in the El Mozo Project pursuant to a net smelter returns royalty agreement (the “Royalty Agreement”). Under the Royalty Agreement Goldgroup has the right to repurchase the Vendors’ NSR2 for consideration of: ? US$1,000,000 paid on or before the date (the “Repurchase Date”) which is the later of January 17, 2017 and the date permits for commercial production on the El Mozo Project are granted; or ? US$1,500,000 paid on or before the date which is 30 months following the Repurchase Date; or ? US$2,500,000 paid on or before the date which is 42 months following the Repurchase Date. The consideration for the NSR2 royalty repurchase can be paid in cash or in Goldgroup common shares, at Goldgroup’s option.
