PINL:VLTAF - Post by User
Comment by
gold_diggers1on Jan 30, 2013 12:50am
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Post# 20909496
RE: RE: JV question
RE: RE: JV question Treetop1 - I suppose a JV is a possibility, but a major with hundreds of millions to invest would probably prefer to own the mine and the profits, not share them with a junior. So if the project is attractive, they could try to buy the project or the company and build the mine themselves.....
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In the case of VTR, there is the poison pill in place making the takeover a bit difficult, if not impossible..... Hence VTR management and a major may negotiate on a partnership that will benefit both. And that major also has the current experienced team to continue the project. I am not sure how the NPV, IRR, payback period work in details, but let say when Kiaka goes into production, and a profit of $600 per oz is realized (after all expenses) then 1 million oz is worth $600 millions for both companies. And that major will also have am offtake of gold to replenish their supply...... Will that work
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GLTA