$400m commitment to $ 30m co. geeesus "HudBay will also provide financing for the first $50-million of VMS's portion of exploration and development costs for each of the four separate option agreement claim groups. "
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Huge distinction.
# 1 . $ 50 m for all 4 optioned claims ...or
#2 . $ 50 m for
EACH claim ? .......4 x $ 50 m = 200m .?
If case # 1 : $ 50 m is 30% of JV , means , HBM intends to spend on development
of 4 extra claims
IN ADDITION TO CORE REED LAKE JV
at least $ 166m
If case #2 : HBM spending $ 200m = 30% VMS portion, means,
the total spending =$ 642m
IN ADDITION TO CORE REED LAKE JV
What will be the capex on Reed Lake JV?
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I'll tread for now , unless evidence to the contrary , the # 2 case as too good to be true.
That would suggest , JUST the extra 4 claims can prooduce MORE $$ than WHOLE HUB now ($ 800M revenues)
HBM,s other big project -LAROR is set to double HBM revenues and to
develop it cost $ 450m.
Another words, to build a mine (s) / company as big as HBM ,one needs $ 450m capex.
Taking the #1, smaller but SURE CASE of spending $ 166m on those 4 extra claims
+ spending on core Reed Lake JV say , $ 240 m ?? ( just a shot)
th
e total spending on the future expanded JV will be around $ 400m.
T
his amount of spending suggest, the expanded JV WILL BE AS BIG AS HBM NOW.($ 1.5 B cap)
Confirms my identical conclusion based claims area size . here
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=28396754&l=0&r=0&s=VMS&t=LIST
Means, we are looking at $ 500M VMS cap ,( $ 3.8 /sh, 2.5 -3 $ i f they will dilute hugely )
based on just HBM expanded JV,,few years down the road . WOW!!!
If case # 2 would be true ,the future VMS cap would grow to $ 2 b ( $ 17/ sh )
....neee.. that's too much ....
Figuring out above distinction is worth $ + 1 B in future VMS cap.
So ,please, go figure.
The question " $.0.1 /$2 ", will become in longer time frame a question $ 2 / $ 3 ,
and maybe even a question $ 4/ $5.....geeee
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SUMMARY:
MORE EVIDENCE THE FUTURE, EXPANDED JV WILL RESULT IN
VMS CAP OF $ 500M = 15 BAGGER.
CAVEAT: WILL TAKE YEARS.
For now, the core Reed Lake JV can be?? ...... how big production/ revenue wise ?
1/2 of today's HBM, ?
....... 1/3 ? ,
..... 1/4 ?
........ 1/1?......
Depends how big a mine HBM will decide to open there .
But assuming some more drilling,
the resource size suggest Reed Lake = min 1/2 of HBM revenues today.
Right?
Correct me please, if I'm off.
H
BM has no problem with any $$ amount mentioned above.
They sit on close to $ 1 B and itching to invest them in multiple expansions.
That $ 166m apparent HBM commitment for the extra 4 claims suggest,
it is for mine development too.
If they would spend $ 166 m on just drilling, the documented resource could be as big as NDM,s Pebble , or Seabridge ( NDM and the other "biggest in world" , to document $ 300B in ground ,spent just $160 m on drilling)
I do not expect as big resource there - so for $ 166- 200m they can drill AND BUILD a mine
1/2 size of HBM now.
VMS carried free up to that amount
THE FACT ,A $30 M COMPANY GOT A COMMITMENT OF ABOUT
$ 400M FOR DEVELOPING FRACTION OF VMS PROPERTIES - IS MIND BOGGING.
Speaks volumes about value of VMS assets and VMS future too.
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BTW: this got me interested in HBM .
Looks they have ambitious 400% growth plans for next few years.
No financing problems either with their $ 1 b cash.
.