ARZ: Sweetheart Deal

Equities & Economics Report (07/08/2010)
"[NioGOLD] entered into an option and JV agreement with Aurizon in the Marban Block property, which I feel is a sweetheart deal. For a 50% interest in Marban Block, Aurizon must incur expenditures of CDN$20M over three years, with a firm commitment to spend CDN$5M within the first year. . .NioGOLD will be the operator until Aurizon has earned its 50%; after that, it will be Aurizon. WOW! This has given the company CDN$20M dilution-free, plus a payment of CDN$30–$40/oz. that NioGOLD retains. This has significantly added value to the company with a minimum factor of at least two."

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