Hydra expects cash flow

At a gold price of $400(US) per oz, Hydra is entitled, via its 50% interest in Johnsby Mines, to a royalty of 1.5% of the gross value of gold production. This can increase to 2% if gold prices exceed $451 per oz, 3.5% at $600 gold and 5% of gross proceeds if gold sells for more than $800 per oz.

Over the life of the mine, Hydra expects to receive $9 million, assuming a gold price of $400 per oz. Northgate Exploration (TSE), which is both Neptune and Hydra’s largest shareholder, has guaranteed Neptune’s royalty payments to Johnsby Mines.

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