RE:RE:South32 Reallocates Arizona Mining Investment to Silver BullAm i missing something here??? South32 will pony up 10M for exploration in the next 4 years with the option to pony up 90M to get a 70% stake in the project at the end of 4 years. So really, they fund the drilling over the next 4 years and if results come in great, then they pay 90M to get 70%. SVB gets 10M up front for drilling during the next 4 years without needing to raise capital and thus no dilution. If the drill results are great, they'll receive 90M and then go from a 100% to a 30% owner. As it stands now: 5B lbs of Zinc = $7.2B 100Moz Ag = $1.7B ------------ Total $8.9B (only Ag and Zn) The project has $8.9B in the ground (not including Lead and other metals) as of today. South32 puts up $10M for drilling. Risk here is the results aren't that great and they are out only $10M if this happens. $90M at the end of 4 years of drilling in which there really is much risk at all to the 90M because they don't need to take the 70% if they don't like the results they get in the next 4 years. The results will need to be great, then they pay the $90M and probably will cough up another $60M to buy out SVB's 30%. So let's say the results are very good, South32 will likely buy the whole $9B+ project for $150M or maybe $200M. Alternative would have been to let SVB raise the $10M or $13M capital in the mkts and let the price dilute. They retain 100% ownership of the project and continue drilling with the hope of great results in the coming years. Then sell off the 100% owned project to a major for around $500M. I still think South32 got the better of the deal here...