RE:Question
The South32 deal derisked the project greatly. SVB got 4 years of drilling costs around $10million. It also a positive sign for potential of resource and great to have an active partner onboard. Also the deal prevented dilution and led to three possible outcomes:
(1) Drilling results in good hits and South32 takes SVB private in accordance with deal and large payout, albeit smaller under terms of deal for shareholders
(2) Drilling results are good, but not quite there and South32 extends option for a few more years. Again, SVB positive and no more dilution, but more funds for drilling a few more years
(3) Drilling results are not sufficient and South32 walks from option and SVB has survived 4 years, avoided dilution and has 100% of resource still.
It is far less likely the SVB goes to zero with South32 on board. SVB should be north of $0.30 with silver prices north of $25. As soon as this appeal is over and the blockade is finished, there will be immediate assays on the two drill samples already done and more drilling targets and work and commence. This is very much not on the radar. When it sneaks up through $0.20 a share it will get more attention and the other distractions with blockade will be over and news flow and work can begin once again.