GWA.v Gowest Buys Back 1.5% Royalty on Frankfield Property Cost 10M shares.
Dont know how they pulled this off but value went in a positive direction.
Under the original terms of the Royalty, Gowest held an option to purchase the Royalty from the Vendor in its entirety at any time upon payment of CDN$1,000,000 for each half percent (0.5%) of the royalty (for a total payment of CDN$3,000,000) and also held a right of first refusal on any offer to purchase the royalty made by a third party. The Company was also obligated under the Royalty agreement to make a one-time payment to the Vendor, at the Vendor's option, of CDN$500,000 or 2,500,000 common shares of Gowest upon the commencement of commercial production at Bradshaw.
The savings here will increase the "NPV" of the Project from CDN$49.6 million to CDN$52.6 million and increase the ("IRR") from 32.01% to 34.25%
Note the numbers from the Pre Feas are based on reserves. Reserves are a small portion of the M & I. Also the Pre Feas did not include the benefits of the ore sorter as Stantec kept the report on the conservative side.
The CAPEX to put the project together is only $20 Million. The potential leverage on the IRR numbers from increased volume and efficiencys available here is high.
Checkmate28
