RE: RE: mary march
I believe you are right, PD did not want to sink any money into further drilling (as stated lower metal prices and cash flow problems) so they put together a deal where we have to drill to obtain our interest. According to the website we have the option of obtaining PD 50% interest upon doing a specific amount of drilling. I believe that in addition we have to provide PD with a certain number of our shares and they retain a smelting %. It is a good deal for Canstar and hopefully someday soon we will be able to prove that the goods are there.
For other 50% that Xstrata owns, we have a first right of refusal to buy the property if another company puts in an offer (therefore we can only buy at what would probably be FMV of the property). We do not have the right to purchase at our option. I doubt that any transaction will happen for that 50% before any drilling is done so it could be expensive to ever obtain that 50% interest.
What I do not know is whether Xstrata has to fund 50% of the drilling costs while we earn our 50% from PD.