Looks Like this was the issue ( analysis courtesy of Texas T & TX Rodgers )
Page 5 of 6 of the
Bellary Dome Conglomerate Gold Project- Supplemental Information - dated Jun 14, 2018
• E47/3555 is subject to a 5% Gross Smelter Royalty to Bacome Pty Ltd.
This stems from the purchase of Bellary Dome by Marindi on November 10
th, 2017
: MARINDI SECURES OPTION TO ACQUIRE PILBARA GOLD-BEARING CONGLOMERATE TENEMENT: BELLARY DOME PROJECT
KEY DEAL TERMS
- Options Fee - $100,000 cash and 10m Marindi Shares for an exclusive 45-day option to acquire
- 100% of tenement number ELA 47/3555.
- Marindi can exercise the option within 45 days by paying a further $400,000 in cash and
- issuing 80m Marindi shares.
- Marindi is required to keep the tenements in good standing and spend a minimum of $350,000
- per annum once the tenement is granted.
- Bacome to retain a 5% Gross Overriding Royalty on any future production from the tenement.
A Gross Overriding Royalty (Gross Overriding Royalty) is usually calculated based on the percentage of the value of mineral products produced, without deduction for costs or with deduction for the costs to make the mineral products marketable and to deliver them to market. The Gross Overriding Royalty is best applied to commodities that can be sold with minimal processing, such as diamonds. Gross Overriding Royalties are payable regardless of whether the mine is profitable.
So, it looks like Marindi does in fact have some legacy commitments attached to the Bellary Dome tenement that it acquired from Bacome Pty Ltd. And it is very likely that PAC has done their DD and are not willing to get wrapped up in this kind of deal and third party obligation.
Tx
Read more at
http://www.stockhouse.com/companies/bullboard?symbol=v.nvo&postid=28439840#p0T24Pufj9eTi8sc.99
