Bye bye Cove Well there she goes... Cove was the reason I bought VIT many years ago, and it in what has been an incredible horror show, I've watched as VIT wasted my time by not drilling even ONE F**KING HOLE (at the Helen zone) IN THE ENTIRE TIME THAT I WAS IN THE STOCK. That was atleast 5 years ago when I entered VIT with the excitement of high grades of the helen zone.
when I first read the news I seen this...
"Total consideration for the acquisition is approximately US$28 million, payable over a three year term including $8 million on closing (with Premier having the option to satisfy up to 50% of such payments by issuing common shares to Victoria)."
I just about s**t myself. Then I read further and seen this...
"In the event of production from the Property, additional payments are to be made to Victoria in the amount of Cdn$20.0 million, consisting of cash and/or the equivalent value of Consideration Shares, at Premier's option, payable in 4 instalments of Cdn$5.0 million each upon the cumulative production, to Premier's account, of 250,000, 500,000, 750,000 and 1,000,000 troy ounces of gold from the Project."
So VIT gets/will get approx $48MM for the property, which in reality is not a bad deal at all. At least they were smart enough to have a clause ensuring more value in the (likely) event that the property goes into production.
All this doesn't matter anyway. Now watch as they walk this thing DOWN DOWN DOWN to some rediculously low level. VIT has better than 60MM in cash and better than 2MM oz au RESERVE in the ground, and it can't even hold a $100MM market cap. PATHETIC!
And of course PG will rally on this news as well, but for VIT it's only gonna be DOWN DOWN DOWN BIGF**KING TIME.