What are implications of El Morro Deal for NGD?My question is regarding how this deal will affect NGD. As I understand it, the benefits are 3 fold:
1) 50 Million Cash
2) Financing interest reduced from 12% to 5%
3) 225 Million saved in spending requirements. (This one I didnt quite understand how this happened, can someone please explain it to me)
Overall though what does this mean for NGD's 30% stake, do they have the cash flow to stay with this project all the way to production, considering development will cost anywhere from 2.5-3 billion dollars. I read one article that said Barrick tried to buy NGD's stake in El Morro for 300 million cash but instead NGD did the deal with Goldcorp.
Lets have a little discussion if we can on the implications.