Under the terms of agreement, Aphrodite is not liable to any repayments for initial five years of agreement, and if production at the project commences within that time, will receive a 2.5% royalty.
If the miner fails in commencing production within five years, the company has to pay $250,000 every year to Franco Nevada, which would offset the due-royalty had production began.
Franco Nevada Australia managing director Kevin McGellicott said that their management would keep Aphrodite apprised of progress, and they would be pleased to offer them the opportunity to provide the required capital expenditure for production.
Aphrodite has announced to forward the advance amount, along with its $1.7m raised from recent share placement, to advance the project pre-feasibility study that is currently in progress.
