Ann: Grant of Mining Lease for Agate Creek Gold Project, page-21

Am I missing something or is the deal that Maroon Gold is responsible for mining and haulage to the Black Jack processing plant and that the revenue split is as follows?

Gold Grade below 3.5g/T Au = 100% of gold payable to Maroon and 0% to LNY
and
Gold Grade above 3.5g/T Au = revenue sharing of 60% LNY and 40% Maroon Gold only for the additional gold calculated above the 3.5g/T head grade.

Maybe I have missed something but it would be a simple matter of Maroon Gold to simply ensure that the head grade never got above 3.5g/T (which would be easy to do with dilution and generous mining blocks) and they would receive 100% of the revenue from the Agate Creek ML leaving LNY with 0% of the revenue from the Agate Creek ML's. Guess where the head grade of the ore processed and gold recovered is reconciled each month or quarter? I bet it won't be in the offices of LNY, it will be on the mine site at Black Jack with Maroon Gold personnel.

Have I missed something in the terms of the deal because that seems like an incredibly stacked deck/deal to me?