Western Copper n Gold (WRN)

[debtfreeme]

New to this stock, but it seems intriguing and I'm trying to find out a bit more about it.

I've been scanning the most recent financial statement I can find (Q2, period ending June 30, 2016), and I encountered this statement:

"The Company’s only exploration and evaluation asset is the wholly-owned Casino Project. The Casino Project is a large copper-gold-molybdenum porphyry deposit located in Yukon, Canada.
All claims comprising the Casino Project are subject to a 2.75% net smelter returns royalty (the “NSR Royalty”) on the future sale of any metals and minerals derived therefrom. Western has the option to repurchase 0.75% of the NSR Royalty (resulting in a rate of 2%) for US$59 million if the amount is paid on or before December 31, 2017.
As part of a separate agreement, Western is required to make a payment of $1 million upon making a production decision on the Casino Project."

Can anyone help me break this down and understand what exactly this means?

Any other information or tips you guys may have about this stock would also be welcomed, thanks in advance!