I'm no attorney, but looking over the complaint on page 3, article 10 it defines production as
"the recovery and sale of copper and other minerals and metals from ore from the Properties such that royalties in some amount shall have been paid to Plaintiff in accordance with (paragraph 2.A of Agreement)." Additionally the agreement provided that "for there to be 'production,' such recovery and sale of copper or other minerals or metals must be pursuant to a plan for handling and processing of ore (including dumps) from the Properties such that a processing rate of at least 300,000 st (short tons) per year of ore is projected to be achieved by the second full year of operations."
If WUCC has already paid royalties to PN from the recovery of magnetite which is what we understand, then they have started to fulfill their end of the agreement since magnetite is a metal and is part of the refining process to recover copper and precious metals from the Hidden Treasure mine.