RE: RE: Glad you can laugh Lurk/M.B.I still believe that Vale/ODB intended Largo to mine the Maracas Project when they optioned it to them. I still believe that to be the case, only that the likely hood of Largo being able to finance and move the project forward in this environment was NIL. For that reason Vale didn't issue the extension on the payment. Is it in Vales best interest to see LGO obtain a true majority interest in the project and let it sit idle because they are unable to obtain project funding? Of course LGO wanted that extension. With 80% they would have been in a much better position as a buyout target. But from Vale's perspective, what is the most effective way to get vale out of the project. If LGO had funding in the bag, sure give them the 80%, let them mine it an reap some of the profits. With no project financing the project isn't going to pay out anything.
At this point its up to Vale to either form a JV with Largo and provide access to project funding or to buy out LGO's interest. Either way its the only way that Vale/ODB will get value out of the project. It doesn't pay to have it sit on C&M........
lurk