Vaaldiam Mining Inc VAALF

good deal (just saw this)

[lilswede]

The key terms of the acquisition of the additional 31-per-cent interest are:

• Vaaldiam must make three payments totalling approximately $6.5-million (U.S.) to the existing joint venture partners: approximately $900,000 paid upon execution of this acquisition agreement; $1.5-million (U.S.) on Aug. 4, 2011, and $4.1-million (U.S.) on June 4, 2012;
• Vaaldiam must finance the B3 project to production and will receive all profits until full recovery of the project development cost. Thereafter Vaaldiam will receive 51 per cent of the profits. The cost of future production expansions at B3 and the development of mines at other kimberlite occurrences on the property will be paid pro rata by all shareholders and not solely by Vaaldiam;
• In the event that Vaaldiam fails to satisfy the terms of the agreement, including failing to complete certain milestones by predetermined deadlines (where the reason for such failure was within the reasonable control of the company), the remaining shareholders have the right to:
  • Terminate Vaaldiam's role as operator;
  • Repurchase the 31-per-cent interest by repaying Vaaldiam the full $6.5-million (U.S.) transaction consideration within 60 days, thereby reducing Vaaldiam's interest to 20 per cent;
  • In certain circumstances, compel Vaaldiam to sell its remaining 20-per-cent interest at fair market value as determined by a qualified and independent third party.
• In the event that Vaaldiam is no longer operator and a third party subsequently invests additional capital to bring the B3 pipe to production, Vaaldiam will still receive its pro rata share of the capital repayments as originally contemplated until it has recovered all of its invested capital and will thereafter also receive its pro rata share of the profits from continuing operations.

[wesmile]

Did the seller delivered the promise diamond in 2010 and what is the chance the seller keeps the promise to deliver 2011 diamond?  The % of the company doesnot matter if the mine is empty and the VAA mgmt are no where near the mine. The cash reserve will be better off distribute to shareholders as dividend.