Hi Norman,
You're correct, the deal is done in terms of "an agreement between Kinross and MIQ to joint venture the project and the overall implication's of this deal", meaning the money to be spent over the full life of the deal, the proportioning of the deal, ie. 50%, overall feasibility and overall private placement. Basically, Kinross and MIQ are in bed together for the next four years minimum and if successful in their venture, much longer.
What remains and what I believe AGORA and others are talking about, are the final semantics of the deal. Essentially, meaning that 10 million is to be spent, how much will there be this year for exploration, what term or conditions have to be met to have more than the allotted amount, how soon do they want to get into the ground if further results are positive, how will the private placement be broken down, will the private placement be one lump placement, how many Kinross people will be on site, how will they future developments, etc... So you see, the "overall" deal is done, it's the semantics that have to be completed.
Can it fall through? Of course it can, after Bre-X, I don't discount anything...IMO, after having followed this company for over 1.5 years and the developments, particularly with respect to results, I highly doubt Kinross would back out or MIQ for that matter. I know that this has been a sought after property for years, the only thing holding others back has been the extensive leg work to get all the claims in order to make it work and MIQ was able to do it, I believe this was the work of Michel David and it took him something like 5 years. I'll bet the final semantics will be worked out soon, so that they can get into the ground ASAP, if the weather permits (since Romarco has held up drilling in the area).
This deal is great for MIQ, because they have the money now to continue to do the deal. As for Kinross, they have to prove to their shareholders they are out there working on their own share price and what better way than to JV a property that has one of three gold windows in the Carlin Trend, and that being the second largest. With the other's being on the properties of Barrick (Goldstrike) and Newmont. If I'm not mistaken and I'll try to verify this, or maybe someone else can...but I believe Kinross has one of the world's foremost expert's about the Carlin Trend on their payroll, this is why I believe Kinross made a deal with MIQ so quickley without a lot of dickering back and forth.
I hope this helps and I'll try and verify that last part, unless someone else knows?
Brandon |
