Replies to post #107 on Clifton Mining Company (CFTN)

[just-for-fun]

Clifton did not receive $80,000, the Moeller Family Trust did. I doubt CFTN will receive but 10% of that.

On March 1, 2011, the Company entered into a contract with Asarco, LLC to process approximately 200 tons of copper concentrates with silver and gold by-product. These concentrates are processed at the Cactus Mill pilot plant. Pursuant to this contract, the Company has delivered 193 tons of concentrate by the end of June 2011 and has billed $834,408 in accordance with the revenue contract. Both parties conduct assays to determine the value of the concentrates. If there is a dispute, the assays undergo further analysis by an independent umpire who determines the settlement value of the concentrates. At June 30, 2011, all of the concentrates under this contract had been delivered to the smelter and had been billed based on estimated assay results. Final results and all proceeds are expected to be received within 90 days. The Company owes royalties to the Moeller Family Trust on revenues earned from concentrate sales pursuant to terms of a Joint Venture Agreement. The Company estimates approximately $80,000 in royalties will be paid in connection with this concentrate sales contract.

[just-for-fun]

The way I read it is 4-15% EXCEPT for Kiewit. 6% for all Kiewit.

NOTE 6 – COMMITMENTS

Mining Properties
During the year ended December 31, 2009 the Company entered into a Joint Venture Agreement with the Moeller Family Trust (NOT CFTN)for the leasing of the Trust’s Yellow Hammer property in the Gold Hill Mining District of Utah. Pursuant to the agreement, Moeller Family Trust received 250,000 shares of the Company’s restricted common stock. If the Company does not place the Yellow Hammer property into commercial production within a three year period it will be required to make annual payments to the Trust of $50,000. Under the terms of the Joint Venture agreement, the Company will be required to pay a 6% net smelter royalty on the production of base metals and a net smelter royalty on gold and silver based on a sliding scale of between 2% and 15% based on the price of gold and silver, as applicable. The Company has incurred royalty expenses of approximately $80,000 as of June 30, 2011 associated with sales of concentrate during the six months ended June 30, 2011.


Also during the year ended December 31, 2009, the Company entered into a Joint Venture Agreement with the Clifton Mining Company and the Woodman Mining Company for the leasing of their property interests in the Gold Hill Mining District of Utah. Under the terms of the Joint Venture agreement, the Company will be required to pay a 4% net smelter royalty on base metals in all other areas except for production from the Kiewit gold property and a net smelter royalty on gold and silver, except for production from the Kiewit gold property, based on a sliding scale of between 2% and 15% based on the price of gold or silver, as applicable. The Company will also be required to pay a 6% net smelter return on any production from the Kiewit gold property. Additionally, if the Company does not place the Kiewit, Clifton Shears/smelter tunnel deposit, and the Cane Springs deposit into commercial production within a three year period, it will be required to make annual payments to Clifton in the amount of $50,000 per location.