here is the gist of the agreement/ann. : Monax Mining Limited...

here is the gist of the agreement/ann. :

Monax Mining Limited (Monax or the Company) is pleased to announce that it has signed a binding termsheet with the owner of three Exploration Licences in the Litchfield area, Northern Territory. ... blah2
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Under the terms of the agreement, Monax has the right to earn a 90% interest in Exploration Licences 29731,28462 and 30521 by spending A$1,500,000 on drilling activities within 24 months of the date of execution of transaction documentation.
At the completion of the farm-in period, the vendor can elect to do either of the following:
 sell a 10% interest to Monax for an agreed amount or, if no agreement is reached between the parties,
for fair market value as determined by an independent expert; or
 sell a 10% interest to a third party but not before offering Monax the option to purchase the interest at a
value equal to the highest offer by a third party; or
 enter into an unincorporated JV with Monax during which time the vendor will be free carried until a
decision to mine (DTM). Upon a DTM, the vendor has the option to co-fund expenditure based on a respective 10% interest or convert the interest to an ongoing net smelter royalty (NSR) of 2% for all mineral sales derived from the tenement.