bright future as iron ore producer.??, page-9

Not sure why there is an issue
From announcement 24th Nov 2009 and the 10th Dec 2010

"Royal Resources Limited (Royal) is pleased to announce that on 23 November 2009 Mintech Resources Pty Ltd (Mintech) and Razorback Iron Pty Ltd (Razorback Iron) (a wholly owned subsidiary of Royal Resources) entered into and completed under a Tenement Sale Agreement (TSA) for the sale by Mintech to Razorback Iron of 100% of EL4267.

As previously announced, EL4267 is the key tenement in the Razorback Ridge Project andcompletion under the TSA represents a critical milestone in Royal's acquisition of the Razorback Ridge Project."

"The consideration to be provided by Razorback Iron to Mintech under the TSA comprises the consideration formerly payable under the Share Sale Agreement and Consultancy Agreement, being:
? a $250,000 deposit and $4.7 million completion payment, paid by Razorback iron; and
? $5 million on successful completion of a Pre-Feasibility Study;
? $20 million on successful completion of a Bankable Feasibility Study; and

if a Decision to Mine is taken by Razorback Iron, a royalty of 1.25%, calculated on the same basis as royalty payable to the South Australian Government on minerals.

Razorback Iron will now apply to the South Australian Minister for Mineral Resources Development for Ministerial approval of the transfer of EL4267 to Razorback Iron and, once Ministerial approval is obtained, Razorback Iron will then apply to be registered as the holder of EL4267.

From Announcement 10th Dec 2010

Royal Resources Limited wishes to announce that it has negotiated with Mintech Resources Pty Ltd, a private company, for the early payment of the PFS Amount associated with the tenement holding the Razorback Iron Ore Project in South Australia. Under the Tenement Sale Agreement announced to the ASX on 24 November 2009, Razorback Iron, a wholly owned subsidiary of Royal, was obligated to pay Mintech the PFS Amount of $5 million on achieving a Prefeasibility Study on EL4267. EL4267 hosts the Razorback Ridge Inferred Resource of 277Mt announced to the ASX on 25 August 2010. The PFS had to be achieved within three years of the signing of the TSA. Within two years of declaring a PFS, Royal was obligated to conclude a BFS and pay Mintech $20 million, the BFS Amount. If either hurdle is missed EL4267 reverts to Mintech.

In response to a request by Mintech that Royal consider an early payment of the PFS Amount, Royal negotiated a reduced payment of $2.5 million (payable by Razorback Iron) on the basis of both the time value of money and the acceptance of a higher risk by Royal in the absence of a PFS being completed. Importantly, the time limit for the trigger for the payment of the BFS Amount, ie, the completion of a BFS, has been extended by two years. The original requirement
to pay the BFS Amount by November 2014, has now been extended to early 2017."

So not sure of where the problem lies?


Rgds,

Desie101