-- The Twangiza Transaction provided for the payment by the purchaser of a
deposit in the amount of $67,500 and the delivery to the purchaser over
time of a certain percentage (the "Entitlement Percentage") of the life-
of-mine gold production (effective January 1, 2016) from the Twangiza
mine, or any other projects located within 20 kilometres from the
current Twangiza gold mine, based on the gold price at the time of
delivery. The Entitlement Percentage is 11% based on a gold price
between $1,150 and $1,500 per ounce, 12.5% based on a gold price of less
than $1,150 per ounce, and 9.5% based on a gold price greater than
$1,500 per ounce. When total gold production from the Twangiza mine has
reached 1.14 million ounces from the commencement of the stream, the
Entitlement Percentages above will be reduced by 50%. The ongoing
payments by the purchaser to Twangiza upon delivery of the gold are $150
per ounce. At any time after the third anniversary of the closing of the
Twangiza Transaction, Twangiza may, at its discretion, terminate the
stream by paying to the purchaser in cash a buyback price equal to an
amount which would result in the purchaser achieving an implied internal
rate of return of 17.5% on the cash flows arising from the stream during
the period from the closing of the Twangiza Transaction to the date that
is 12 months following the date of payment of the buyback price.
So $150 will come right off the selling price of gold for the streaming deal for Twangiza for the life of the mine . Well that's going to hurt for a while
AI
