The prospector has the right to buy back all the royalty except 0.5% by repaying the funding according to the following conditions:
- From year 1 to year 5 after funding – Repayment of the funding times 1.5.
- Example: If only year one is funded, the prospector may buy back 0.5% NSR for repayment of $40,000 x 1.5 = $60,000
- Example: If all three years are funded, the prospector may buy back 1.5% NSR for repayment of $180,000 x 1.5 = $270,000
- From year 6 to year 10 after funding – Repayment of the funding times 2.0
- Example: If year one and two funding are advanced, buy back 1% NSR for repayment of $100,000 x 2.0 = $200,000
- The Royalty may be repayable in shares or other currency at the discretion of Innovative Resource Partners.