As you walk through your mine and look at your employees, you know that it may not be long before you have to close down operation. You are running out of money. There is little coming out of the mine and what does come out does not get sold for as much as you would like or need. If you could only get the money to open another mine in another location, you know that there is a plentiful amount of another mineral that pays well. Then you remember another mine operator telling you about a mineral company that will pay you to open a mine for them. Once it is up and running you either give them a percentage of the sales of the mineral or a specific amount of the mineral at an extremely reduced cost. He told you that dealing with the royalty company was easier than dealing with a bank and having to get a mortgage. You do not need collateral to get money from a mineral royalty company. You just have to be willing to pay them back over time with cash or product. In addition, they will assess if the area is viable for mineral mining so that you do not have to risk it by yourself. You decide to go see someone at American Minerals and ask them for help maintaining your current mine and opening another. You keep the overhead of the employees, the insurance, and anything else that you need to keep the mines going. They survey the land where you want to start a new mining operation and they look over your current mine and your finances. Within a week or so, they get back to you and let you know that while they will help you with your current mine, they have another area where they would like you to mine and not the one you wanted. They take you out to a farm and ask you to mine for minerals underneath it. They ask you to try and keep damage to the surface, the crops, animals, and buildings, to a minimum. In return, they want a percentage of the minerals at a 95% discount. You take the agreement to your attorney and your financial advisor and once they inform you that it is a good deal, you sign the contract and get ready to begin. You are excited at the prospect of a new mine and a new mineral. You begin excavation shortly after to see what you can find underground. Once you hit pay dirt and find a substantial amount of a mineral, you start dreaming about what you will do with the profits once your employees and the mineral company are paid. You dream about a vacation, fixing up your home and maybe redoing the bathroom, and saving for your children’s education. You know that your employees are appreciative of the extra income and the security of knowing that their job is once again safe.