Author: teevee --
Date:1999-02-22
13:21:58
Subject: Post Script-don't
deal me in-
WillP, On a more serious
note, the way JV's
normally work is that the
operator will provide a
30-60 day notice to its
partner(s) to put some
cash into an operating
account AND
demonstrate that they have
the money to fund their
ongoing projected share of
costs...or face immediate
dilution(asuming the
operator is prepared to go
it alone or take on a larger
interest).......the notion that
RTP would procede on
the basis that Aber's board
of directors would or
could spend a 100 million
without having the other
250 million bucks lined up
is absurd....nobody in the
real world of business acts
this way or this
recklessly......besides,
there are feduciary
liabilities in additon to
duties and responsibilities
that directors of Aber are
no doubt very aware
of........If Diavik is as good
as you think it is, RTP will
not hesitate or blink when
it comes to diluting Aber
because they can't ante up
at the card table of
diamond mine
development(and neither
will the Nevada's as
lenders of last resort for
that matter).....I'm afraid a
$100 million bucks isn't
enough when you are
playing an open stakes
game with dealers like
RTP and
DeBeers.....hmmmmm....maybe
Winspear is nervous for
good reason afterall?
Perhaps our foolosophy
friends, jspec and
RealityCheck could jump
in here and make a
compelling argument for
"enlightened self interest"
as the basis for an Aber
financing, via debt and or
equity, for the balance of
the funds required for
Aber's share of capital
costs for developing
diavik? regards, teevee
Top
Reply
Author: WillP --
Date:1999-02-22
14:37:01
Subject: Good Choice,
I've Got a Full House
Sorry for the poker title...I
couldn't resist.
Actually...only the current
years expenses could be
so included. It depends on
how the deals are struck,
however. I don't pretend
to be privy to that. :-)
I don't think that DDML
or its parent would
consider the possibility,
however unlikely, of
increasing its share of
ownership to be 'reckless'.
Not at all. :-)
The problem with trying to
speculate along this line is
simple...there is no
'bankable feasibility'
study...hence no bank.
Nor is there going to be
until there is something to
'take to the bank'. There
most assuredly have been
discussions with lenders,
but that isn't going to make
it into the public domain
any time soon. The final
words between them, I'm
sure are: "Well, when
you're done feasibility...."
Or...back to the Winspear
example...does Winspear
have the expenses for
2000, 2001, 2002....on
hand?
You're correct about the
'dilution'. Assuredly the
operator would be very
willing to strike a side deal,
or just proceed with an
increased pro-rated share
of the project.
But it's not going to
happen.
Put another way...in simple
terms...if Aber can't find
$200-250 million in debt
financing from a Canadian
or international bank with
proven reserves of 20
million tonnes grading just
under an ounce of gold
equivalent, and a further
10 million at a lower but
substantial 'grade'...then
woe betide the Canadian
resource sector.
I'm sure you didn't intend it
that way...but it's starting
to sound much like the
equivalent of a "certain
$2000 per tonne minimum
ore value" refrain that
keeps popping up. :-)
A more pertinent question
in that case might
be...what *are* the banks
going to do with their
money for hire?
There's actually an easy
way to judge the future
attitude of financial
institutions towards Aber's
prospects.
Ahhh....speculation. Must
be a slow day on the
Winspear front. :-)
P.S. I see one of my two
primary interests had a
good day on the market.
Maybe someone put out a
'buy' on them. (rotfl) :-)
Cheers,
WillP
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