RE: RE: RE: stupidHow the money gets spent is governed by the joint venture agreement. Vior may not wish to spend more on Douay if Norvista is going to spend $2.5m. There would have to be a JV after the earn in for 50% was completed, if not sooner. It sounds like Norvista wants to shoot for larger and more advanced deposits. They may see an area where more resources could be added quickly and cheaply. Vior may wish to work on Vezza, which is next to a mothballed Agnico property with headframe and some development work.
The most recent study on Douay by Vior did not define reserves, only resources that could be mined with general costs, parameters, and assumptions defined. The bulk sampling I think would have helped to solidify the resources (although from what i remember nugget effect was not a problem) and provide cash flow for further development and exploration of the other properties.
Norvista hasn't even made the $1.5m payment, so they have earned nothing yet. Norvista is a merchant banker, possibly a vulture capitalist. What they wish to make from this deal will not be made known to us, nor Vior. They provide money with the expectation that they are going to make money commensurate with risk.
I would have preferred to see a better deal but perhaps there was no other offer, or if there was/were they were inferior. Maybe management is not really into development and mining, maybe they're looking for an buyout somewhere down the road. Maybe, and who knows. I would think that 50% for $8m was a good deal, or a secured loan for 25% based on the mining study numbers, but apparently no one agreed with me.