TSXV:NORA.H - Post by User
Comment by
bplondonon Feb 16, 2012 7:34pm
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Post# 19546588
RE: Orko Silver Provides an Update of Activities a
RE: Orko Silver Provides an Update of Activities a I believe you are mistaken when you say that Orko cannot unilaterally discharge the agreement. Both Orko and PAA are capable of unilateral discharge. Under the terms of the JV Pan American must deliver feasability by the end of Phase 1, which is either April 12th or July 12th if they take the extension. ONLY if the project is NOT economically viable at that time can PAA elect to extend the terms of the JV for another year.
Even PAA's PEA with $25 silver, watered down resource, etc. etc. shows that the project is very viable economically. AMEC's work and the new resource estimate will only show that it is more economically viable-PAA may dispute that but reality lays probably somewhere in between the PAA and the Orko and AMEC position. Only a total collapse in the price of silver would enable PAA to deliver a feasability study at this stage that says the project is not viable. If it is viable (which it is) they must to deliver to Orko an acceptable guideline and timeline with respect to putting the project into production, one which must be agreed to unanimously by the directors of the JV company, which consists of both Orko and PAA representatives.
The timeline for delivery of that, along with feasability, is April 12 or July 12. No delivery of that and or no agreement from Orko on what is delivered in terms of putting the property into production and there is no deal, no JV agreement and Orko is free to shop themselves to anyone.