if HDG prove up 1.4 billion tonnes and exercise their option,...

if HDG prove up 1.4 billion tonnes and exercise their option, they must pay the vendor US$0.10 per tonne of all JORC classified Measured and Indicated Resources

1.4 billion tonnes x US$0.10 per tonne = $140 million.

HDG must also spend $5,000,000 over 4 years

Plus pay US$500,000

So the acquisition cost may be $145,500,000 for 99% of the project

If HDG does not exercsise the final 24% option then the vendor earns 25% of a proved JORC for free, incurring no exploration costs.