You're assuming RCF will exercise the options the moment they...

You're assuming RCF will exercise the options the moment they are in the money.

As far as I can tell, they have very little incentive to exercise earlier than at the 5-year mark and destroy the time value of the options. While exercising the options before Balama might boost the share price, they would still be better off forcing DF to look for alternative financing options and exercising well after Balama is fully operational. (Their $5 mil stake is far lower than the value of the options)

I'm surprised DF agreed to 5 years even though the term doesn't match his proposed expansion timeline. Aside from this issue, the rest of the agreement is sound.