Replies to post #4928 on Alkane Inc (ALKN)

[christian_dx]

I feel like death after today... I sure hope the sellers werent insiders who received free shares for the monetary funding of drill programs....(such as the Ukraine)

did Walter leak something to his investors?????

[shadera]

Is 50% not fair... they're doing the mag which will cost about $3,000 and drilling which will cost about $10,000 to earn a 50% interest... but... they have to carry me for $250,000 in exploration costs more or less...

At that point I either participate in costs, reduce to a carried 2% Net Smelter Returns royalty (below is what they emailed me) or sell my 50% to another interested party... there will be no first right of refusal on my carried interest or reduced NSR interest.

And most important I will get paid all my cash costs and some stock in their venture.

NET SMELTER RETURNS

1. For the purposes of this Agreement, the term “Net Smelter Returns” shall mean the net proceeds actually paid to the Purchaser from the sale by the Purchaser of minerals mined and removed from the Property, after deduction of the following:

smelting costs, treatment charges and penalties including, but not being limited to, metal losses, penalties for impurities and charges for refining, selling and handling by the smelter, refinery or other purchaser; provided, however, in the case of leaching operations or other solution mining or beneficiation techniques, where the metal being treated is precipitated or otherwise directly derived from such leach solution, all processing and recovery costs incurred by the Purchaser, beyond the point at which the metal being treated is in solution, shall be considered as treatment charges;

costs of handling, transporting and insuring ores, minerals and other materials or concentrates from the Property or from a concentrator, whether situated on or off the Property, to a smelter, refinery or other place of treatment; and ad valorem taxes and taxes based upon production, but not income taxes.

In the event the Purchaser commingles minerals from the Property with minerals from other properties, the Purchaser shall establish procedures, in accordance with sound mining and metallurgical techniques, for determining the proportional amount of the total recoverable metal content in the commingled minerals attributable to the input from each of the properties by calculating the same on a metallurgical basis, in accordance with sampling schedules and mining efficiency experience, so that production royalties applicable to minerals produced from the Property may reasonably be determined.