Sarissa Resources Inc (SRSR)

[jim6103]

mick.....In reply to your query for number crunching on the Niobium deal.

It appears as though SRSR has an agreement (brokers) to sell the property for a 15% commission and a ..5% (.005) net smelter's fee. The property contains a "potential" gross tonnage of .47% (.0047) Niobium of 20 million tones (2200 lbs/metric ton). The company could also purchase the property and would still get a 15% commission (reduction of purchase price).

Let's assume that Niobium is at $25/lb and that the property contains only half the potential tonnage - 10 million tonnes or 22,000,000,000 lbs X .0047 = 103,400,000 lbs of Niobium X $25 / lb = $2,585,000,000 gross in ground value.

Reasonable selling price would be about 10% of the in ground value or $258,500,000. The 15% brokerage fee to SRSR would amount to $38,775,000. Not a bad pay day for brokering a property!