Speaking of Bema and JV's-here's a tidbit from their webpage:(In order to make a far comparision-you also need to consider that Bema only had a % interest in the property it appears.)
In October 1997, Placer Dome Inc. reached an agreement with Bema Gold Corporation and Arizona Star Resource Corp. for the right to acquire a 51% interest in the Aldebaran property in northern Chile. Under the terms of the agreement, Placer Dome will:
Pay Bema and Arizona Star US$10 million cash (US$4.9 million to Bema, US$5.1 million to Arizona Star) and, subject to regulatory approval, subscribe by private placement for US$10 million of their common shares, as follows, 900,000 shares of Bema at Cdn$7.50 per share and 1,140,000 shares of Arizona Star at Cdn$6.20 per share;
Undertake a US$15 million exploration programme and complete a feasibility study at an estimated cost of US$25 million;
Decide whether to proceed to construction after completion of the feasibility study, and, if so, arrange up to US$1.3 billion of financing for mine construction; including
Investment of US$200 million of equity in the project on behalf of all the partners,
Arranging senior project financing for at least 50% of the capital cost and providing a completion guarantee of up to US$1.1 billion in respect thereof; and,
Providing subordinated debt to the extent that the senior project financing is less than US$1.1 billion;
Construct and operate the mine.
In November 1997, Placer expended US$10.5 million on the Cerro Casale feasibility program. To date, Placer Dome has expended US$19 million on the Cerro Casale drilling and feasibility study. The final feasibility study on the Cerro Casale deposit is estimated to cost US$25 million and to be completed by February 2000. In addition to the Cerro Casale feasibility drilling and program, Placer Dome has conducted exploration on other targets on the Aldebaran property with expenditures totalling US$7 million in 1998. Placer Dome has budgeted a further US$18 million of expenditures in 1999 to continue exploration of the Eva, Anfiteatro and Estrella zones.
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