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Royalty
Overview


A Revenue Stream for Exploration and Development

The Golden Predator Royalty Portfolio is currently held in the wholly owned subsidiary company Gold Standard Royalty Corp. ("GSR") which was created for the purpose of acquiring and holding Nevada-based natural resource royalties with a specific emphasis on precious metals royalties. The GSR passive royalty income stream is indexed to the price of gold and expected to yield annual pre-productions revenues of CDN $1.2 million (based on $875 US oz gold). GSR owns certain assets previously owned by the Lyle F. Campbell Trust, which includes ownership of 23 property interests comprised of unpatented mining claim groups and deeded royalty interests covering more than 70,000 acres in Nevada and a royalty on the Rattlesnake project in Wyoming under an agreement with Evolving Gold Corp.

HIGHLIGHTS
  • Includes royalties and mineral interests on more than 70,000+ acres of Nevada based mining claims as well as other interests in western US;
  • Projected annual revenue pre-production in excess of $1.2million; (based on $875 US oz gold);
  • Advance Royalty Payments escalate with gold price;
  • GSR's Royalty Portfolio includes royalty interests at Bald Mountain, Tonkin Springs and the Pan Deposits in Nevada along with the Rattlesnake project in Wyoming. These properties are respectively under lease to Barrick, US Gold, Midway Gold, and Evolving Gold.
Eleven leases are currently in effect, covering 15 of GSR's projects. These yield income through Advanced Minimum Royalties and retained Gross Smelter Return on any future production and the GSR is positioned to show significant future growth in the event that production is attained within constituent projects or the price of gold increases from present levels.

The typical GSR lease agreement includes, among other things, escalating annual advance royalty payments, escalating annual work commitments and a net smelter returns production royalty payment should minerals be produced from the project. Many of the annual advance royalty payment amounts are the greater of a predetermined amount or a certain number of gold equivalent ounces tied to the fixed gold price in the third quarter of the previous lease year. The gold equivalent value for advance royalty payments has proven to be extremely valuable in a rising gold market as we are currently experiencing with a limitation on the down side by having an escalating fixed annual payment amount should the gold price decline. The required annual work commitment insures that the project is being advanced toward the ultimate goal of commercial mineral production from the project.

Many of the projects were staked and claimed over 30 years ago and they are located in what have become some of the most productive gold trends in Nevada. The projects are primarily situated on the Carlin Trend, the Battle Mountain-Eureka Trend, or the Walker Lane Lineament.

The Portfolio is comprised of a pipeline of projects in various stages, ranging from grass roots exploration to pre-development. GSR's strategy is to maintain a high percentage of portfolio assets under lease and/or joint venture to enhance the probability of exploration success and continual growth of passive income. Additional Properties may be acquired by GSR as opportunities are evaluated by our resource team.


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Evolving Gold Royalty

In January, 2008, the Company signed a property option agreement with Evolving Gold Corp. under which Evolving Gold Corp acquired a 100% interest in the Rattlesnake Hills Property (subject to a 0.5% NSR payable to GPUS) in exchange for which the Company received 3,000,000 Evolving Gold Corp. shares over three years. 1,000,000 shares were received in 2008 and an additional 2,000,000 shares were received during the current period. Evolving Gold Corp. has the right to repurchase 50% of the NSR for $375,000.


Gold Standard Royalty

In March, 2008, the Company acquired Gold Standard Royalty Corp. ("GSR"). GSR holds a portfolio of gold exploration properties located in the State of Nevada formerly owned by the Lyle Campbell Trust. The portfolio, amongst other assets, includes claims and royalty positions covering the Pan Property, leased by Midway Gold Corp., significant portions of the Bald Mountain property of Barrick Gold, and the Tonkin Springs property leased to US Gold. In total, there are 21 property interests, representing 3,562 claims, in the portfolio subject to 9 leases (some of which cover more than one claim group) and 2 deeded royalties covering more than 70,000 acres and a royalty on the Rattlesnake project under an agreement with Evolving Gold Corp. Nine leases are currently in effect which yield income through Advanced Minimum Royalties and also provide for retained Gross Smelter Return on any future production. The royalty portfolio is positioned to show significant future growth in the event that production is attained within constituent claim groups or the price of gold increases from present levels

 

Royalty
Aphro Bald Mountain Bolo Guild/Skipjack Magistral - Jalisco, Mexico Monte Pan Rattlesnake Tempo Tonkin Springs

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