RE: JMS21 Feb 2019 14:17
I forgot to mention the El Limon (El Lemon to the ex Wives Club) royalty
"Red Rock holds 2,500,000 Para shares with 2021 warrants execiseable at CAN 0.30 per share. Red Rock holds a 3% royalty over the Colombian production up to USD 2m and a subsequent 0.5% royalty up to $1m."
From the Para Resources update yesterday, "Proceeds of the Private Placement will be used to upgrade the small mines on the El Limon property in Colombia, to fund exploration programs at El Limon and Gold Road and for general corporate and working capital purposes"
Our royalty is paid off from the total production at the El Limon processing plant not just from the output from the El Limon mine. So Para is spending money on upgrading the sources of feedstock; that should feed through to higher royalties in due course. Just as the gold price is going higher.
I would expect the royalties this year to be materially higher than last year,
DYOR