readying $400m for $10m claimsSorry, Bob, I didn't manage to express clearly
this line of interpretation of the EXPANDED ,FUTURE JV agreement.
First,I wasn't talking about the HBM drilling commitments/ requirements,
arising from optioning those 4 claims.( first step)
This is simple enough- payment of some cash + schedule and $$ amounts to spend
TO EARN 70% IN THOSE 4 CLAIMS.
I was looking bit ahead , trying to assess THE SIZE OF THE DEAL.
AFTER HBM WILL EARN IT'S 70%.( second step) in those 4 claims.
To calculate the $$ size of HBM APPARENT COMMITMENT to those 4 VMS claims
And the size of future, EXPANDED JV by those 4 claims.
from the little data we have.
I guess, I should use the world 'apparent" more often.
The expanded JV is of course subject to finding enough stuff in those 4 deposits to justify expansion.
I ,as everybody else here, am interested in figuring out the future VMS cap as 30% JV partner in PRODUCING MINE(s).
To do so, we need to figure out for the size of that JV-ed mine (s)
And one of the ways to figure it out , what HBM has in mind ,is this number --
how much $$ HBM is APPARENTLY prepared to throw at :
-- the core Reed Lake JV
-- the 4 extra claims.
The CORE RL JV IS A HIGH PROBABILITY FUTURE MINE.
Needs a delineation + expansion to adjacent area drilling and initial capex.
Lower capex than any other comparable mine ,because of HBM existing infrastructure.
My guess was HBM will throw at CORE RL JV minimum $ 240m
.( any smaller mine doesn't make much sense for them )
Could be more or less, depending of final resource size and HBM needs to coordinate
processing capabilities with mining volumes.
I have delivered the other $ 166 m of APPARENT HMB commitment to the extra 4 deposits from this :
CEO Quote "
"HudBay financing VMS’s share of expenditures for the first $50 million for each deposit."
THIS $ 50 m IS NOT A RANDOM NUMBER -- IT TELLS WHAT HBM IS PREPARED TO INVEST AND TELLS
ABOUT THEIR ASSESSMENT OF THE SIZE OF BOTH :
THE 4 EXTRA DEPOSITS
and EXPECTED PRODUCTION LEVEL by them
I know , long shot, to use general industry knowledge about what amount of $$ invested produces what size of mine.
But as for now, we have no other data points - and the final question ( VMS cap as JV miner)
HAVE TO BE ADDRESSED to make semi- informed VMS investment decisions.
For me statements " I hope " , "I think it is gonna be big " , " this co has plenty of merit " is not enough.
I NEED A NUMBER - even if a long shot ,ball park .
see next post "VMS valuation #2"