<<<The Shafter-Presidio Silver Mine is on private land in the State of Texas. Silver Standard controls 3,500 acres of private land on and around the mine sites (Figure 4-2). Silver Standard also controls, via a lease option taken out in April 1998 by the previous owner RGMC, a contiguous 16,000-acre tract of private ranch land (single owner), which includes the Red Hills copper-molybdenum deposit and several miles of land on-trend between Shafter and Red Hills. This lease option includes the right to purchase significant portions of the tract. RGMC has previously purchased all the “major” outstanding royalties on metal production from the Shafter silver deposit. Only the royalty on the very narrow state lease remains and it contains only a minor amount of ore. When RGMC purchased the Shafter property, a 6.25 percent Net Smelter Return Royalty was payable to Cyprus Amax out of future mining revenues. RGMC purchased this royalty from Cyrus Amax for $50,000 cash and a $475,000 note. The note was reassigned to Silver Assets in exchange for Rio Grande stock.>>>
I assume that when RGMC bought back the from SSRI they received the lease option to that significant tract that includes Red Hills. Ping-pong.
The Tosca press release mentions a renegotiated deal with vendors: