RE: RE: RE: RE: RE: Orko Silver Provides an Update My interpretation of the JV is that Section 19.2 (Withdrawl from Joint Venture under "Resignation and Dissolution) would allow Orko to completely walk away at the end of the Phase 1 period. They simply have to give notice that they are going to do so. I see them being on the hook for $8 million or smelter rights (likely scenario is $8 million) to PAA if the property goes into production in the future.
The JV is clearly supposed to be amicable. Orko has worked with PAA for 3 years and wants PAA to do a deal with them, But if PAA doesn't want to, or is so hostile as to obfuscate and further delay at this stage, I believe Orko is within their rights to not proceed to Phase 2. That's why there are no timelines spelled out for Phase 2. They still need to be established by both parties. I believe it may cost Orko $8 million or future smelter rights which, in the overall scheme of things, is relatively cheap. And PAA, if they don't want or can't do the project recovers a big chunk of their expenses.
If PAA does want to do the deal, the pressure will continue to mount for them to bring something to the table which is acceptable to Orko management (not necessarily all the shareholders, but the management) before the deadlines. At this stage, I am resigned to July 12, but I'm optimistic that something will happen sooner.
Because, as you correctly point out, there are no timelines for Phase 2, Orko is not even going to let it go to Phase 2 unless the bulk of what is required in terms of budget and guidelines are spelled out before we get there. They don't have to.