Post says: "Dave can always keep playing the Borden card and force 50 % of the development costs to the "lumber" people to make them a partner. They do not want to partner !! Shouold just take a 3-4% NSR and when borden is producing 4 years from now...one of those royalty companies will buy the NSR for say 20-100 million or whatever gold is worth at the time."

That would be my general understanding as well. I would add some details below:

- I believe the NSR is ~2%, if the lumber people don't want to share the development costs. This could be confirmed with IR.

- For the sake of argument, take 1 MozAu, as a base case, under the 50-50 JV, so a 2% NSR would yield 10,000 oz @ $500/oz (say 1300 sale price -800 cost). 10,000oz x $500/oz = $5M. If, the ounces under the JV is 2Moz then the NSR would be worth $10M. If POG shot up to, say $1800/oz then then the profit margin would be $1000/oz (rather than 500, another factor of 2, NSR = $20M). Hope my math is OK on an empty stomach (save it for dining out tonight, lol).

If I were the lumber people I would take $10M now... and run to the bank for it to collect some decent interest, rather hold out for $20M in 4-5 years (at the mercy of the POG). IMO, $10M is good enough for their retirement. Plus, of course, the NSR for "wedge" for another $5M?

Just speculating folks.

goldhunter