The whole point of JV financing, after all, is that it is A MEANS TO AN END. The Sterling deal will likely provide ALL the EXTERNAL financing that Brush Creek will need to move into production at a significant number (perhaps even all?) of its gold properties. It will naturally be augmented by the company's revenues as production proceeds.
Along the way, as Darlene points out, investors can and will be encouraged by the fact that Sterling is pumping money in, just as they would/will be encouraged were/when a diamond JV is announced. OTHER JV partners for gold, to take up Sailor's interesting point, would not necessarily be a plus for Brush Creek or its shareholders: they would have a cost after all, just as Sterling does, and they would beg the question why Sterling's infusion is not enough for Brush Creek to meet its goals, which can stated most simply as: to maximize gross production, net revenue, and forward-looking assets before its external cash flow runs out or is weakened.
Any news which strengthens those prospects is the news which is ultimately requred to move this stock, and surprisingly good news of this type has the potential to move it big-time.
Oscar |
