$75mil spent, benefits of getting a millBTR will be giving MTO shareholders around $75mil in stock. What are we getting in return?
1) A mill with permits.
When Eagle Hill did a PEA on Windfall Lake, they used LPG as a source of fuel. This is due to the fact the cost of getting power lines run in was around $150mil. OSK have decided to truck their ore to a mill some distance away.
The permitting process will be a lot shorter and BTR can take a bulk sample and have it processed at their own mill.
IIRC the cost of building a mill at Windfall was around $200mil. BTO's initial PEA will look a lot better with lower Capex.
2) BTR is also getting 3 deposits which can feed the mill before Gladiator goes in to production. I'm not sure how much free cash flow they will provide.
IMO it's a good deal for BTR but whether or not the market will like it in the short term is another matter.