I think the issue is that while there is a cap of $3.5m (or 3.3%...

I think the issue is that while there is a cap of $3.5m (or 3.3% of $106,60,606 gold sales), if the total gold is 130k ozs, then (based on $AUD1500 per oz for gold) the total gold sale will be $157.5m which gives BNR royalties of $10.05m less the $3.5m = $6.5m (correction to my previous post.)

The $750,000 payment is a bit strange. It is not for completion, but when BNR becomes 100% beneficial owner.

Maybe the 100% beneficial ownership occurs when GEM are not able to fulfil their buy-in and forfeit. This leaves BNR with 100% beneficial ownership of 130k ozs gold mine. Anybody else got a better interpretation? So all we pay maybe is $1m if GEM do not fulfil their buy-in.????

Given that Matsa is nearby to the Geko site, they would have a pretty good idea as to how GEM is travelling in the area. GEM have lots of tenements in the area and will have requirements to spend money on those. Maybe cash-strapped?

And as is being shown around the country with a lot of gold mines the real money appears to be the higher underground grades compared to the lower open mine pit grades. Traditionally open pit mining was the limit of gold mining, but now with better understanding and higher gold prices underground is proving profitable.

Think Nicholson.