Terug wasn't a fool, so he understood Yale's meaning immediately.
By accepting that axe he was acknowledging Yale as his friend, but Terug didn't need to hesitate because that was his intention from the start.
He was sure that Yale had a great background and just by the fact that he could create weapons of the level of that axe, he was already someone worthy to be friends with.
As for if Yale's words were true about being able to craft weapons of that level as long as he had materials, he didn't mind if it was true or not because every blacksmith that created a weapon of that level was already considered to be at the top.
He didn't doubt at all that Yale created the weapon or else he wouldn't be gifting it so easily. After all weapons on that level were impossible to buy because no one would be willing to sell them, and the only ones that could have the luxury to gift to family and friends were the ones that created the weapons.