RE:RE:The Victor Plantbandi10 wrote: We were told, that DeBeers cost for shutting down Victor was around 200 million. This includes plant teardown and reclamation costs. Along comes Chuck, with an offer DeBeers can't refuse. Give me 20-30 million and I'll assume Victor's shut down costs. DeBeers saves 180-170 million and they walk away from Victor. Chuck now has two options. Either tear down Victor's infrastructure and re-assemble at U2, or truck to Victor, from U2. This would depend on being able to concentrate material at U2, in order to save on tonnage trucked to Victor. If we truck to Victor, we can save on costs of reclamation at U2, by not having to tear down major equipment again. Equipment teardown and re-assembly is still cheaper than buying and assembling brand new equipment. Reclamation costs at Victor remain the same, in either scenario. By the same token, DeBeers can offer Chuck a good price for U2 and extend the life of the processing equipment at Victor. The first step is still awaiting, before we can talk about these options. This step is the most important, and that is, proving U2, to be economical. A third party, might not want to buy Victor's infrastructure, as having to transport it out of there may take years, over the Winter roads. The costs of transport to a very distant site would make it prohibitive. Again just my logic and i could be totally wrong in my assessment.
Thanks Bandi, you got that right. For De Beers, it will be in the form of making up a simple decision tree to evaluate their limited options available for Victor MIne . It is also highly plausible that they might do a Dundee-like deal putting in $51 million for 51% of U2/MTX - similar to Gatcho Kue where they bought up 51% ownership of that diamond mine in joint venture with Mountain Province. Anglo American who owns De Beers says their focus is still on diamonds despite announcing massive sell-off of their world-wide operations and the shut down of the Snap Lake mine
In the prior Dundee deal that was cancelled, MTX stock was valued at $0.90/share for the convertible advance.