TXRogers wrote: Traderdm wrote: In every instance I am aware of, existing infrastructure is an asset. This being said, environmental remediation can negate all existing infrastructure, converting it into a liability.
This depends on jurisdiction and I’m not familiar with any problem attached the radio hill. Even ‘a piece of junk’ can be repurposed and it is much easier to change an existing equipment configuration under an existing regulatory permit than seeking a new one no mater where you are mining.
I don’t know anything about the inter-workings of this trio, however a modification such as this, goes to the mutual benefit of all the parties. It gives Artemis needed cash for something, increases K.L.’s interest in Novo and does not dilute Novo, seems to be a win, win for all parties.
The problems with the pilot plant are real and perhaps complex. Could be the grind or stamping action to fully release the gold particles. It may be necessary to add separate circuits to deal with the gold suspended within the matrix. In every case the pilot plant must be repurposed until the output of the plant meets a profile where the fines lost in the tailing ares minimized. This can take time and Novo is, to there credit, taking the time to do this before they release a per/oz resource on the bulk assays.
What I am trying to ascertain is the real value of Radio Hill to a player like NVO, KL or NEM. I don't think the current plant has much long term utility because of it's size and capacity. It may offer temoprary relief for trial mining, but it's too small scale for anything more.
As an example, if I were to swoop down right now in the CW/Purdy's area as an Intermediate or Major sized producer with the intention to building a larger scale mill using Sumitomo, what are my options and timelines considering permitting, land heritage claims, water rights, proximity to acquifers, hydro electric power, etc.??? Before I even begin construction of such a mill.
Rhino is very good with this $hit. It's his stomping ground and he knows basic timelines. Personally, I consider the Radio Hill facilities a rust heap for a big operator. But the permitting and existing infrastrcture of such a facility may be as good as gold.
DL just sold 2% on NVO to KL at a bargain. And there is absolutely no indiction why ARV would need cash a mere 3 months before these shares come off of hold, and could be sold at market prices at ARV's descretion after August. KL and NVO on the other hand are facing a time line. They are burning cash, have a massive exploration package ahead of them, many tenment licences to pay annual fees on, embedded miner shareholder partners looking for resouces to mine, and most important of all is the decision on NVO's future existence and the exercising of those 14 million warrants coming up in 18 months.
DL is not an idiot, despite other opinions. What is his motivation and reason for urgency to cooperate with KL in such a manner. And as far as I am concerned, it is cooperative behavior for such a smooth sale at just below market price. In contrast to the craftiness he displayed in the acquistion of these 4mill shares in the first place last August 2017. The negotiation process spanned from May to August.
ARV is supposedly close to sparking up Radio Hill around the same time the NVO shares would have become sellable under the original signed JV agreement. RH start up may happen on schedule or it may slip further, but it does appear that some form of revenue is looming in ARV's near future. Does ARV need another $20 mill just to get there? Isn't that what short term loans are for? I mean really.
The JV between ARV and NVO remains intact to this day. ARV owns the lands 100%, NVO manages the gold rights 100%, they both share costs and revenues 50% each. Nothing has really changed in the JV except that DL agreed to sell the precious 2% of NVO exclusively back to KL. NVO declares publically "they are thrilled". DL declares that it's just more proof that the conglomerate gold story is alive and well, coupled with the contradicting announcement that ARV is selling their NVO share portion of it.
Most important is that no matter who may entertain taking over ARV in the future, the JV with NVO will always be in place legally. NVO would still manage the JV tenements as originally signed. I do see cooperative behavior here. Where are the mutual interests or advantages to this all? I would love to see ARV consumed by KL. And the current ARV/NVO JV become the KL/NVO JV. I mean, how perfect is this ?
ARV is a valuable company for many reasons. It's position in this play is one of them. I still anticipate ARV to be consumed by KL and I am really wondering if the Radio Hill infrastructure (not the mill itself), and DL's seemingly cooperative behavior is an indication of the long awaitied demise of ARV. To the greater benefiit of all shareholders in the longer run.
Tx