The deal for royalties (which still has to get signed off on) gives rights over all existing tenements but not new tenements. The thing to keep in mind is that the cash AVB will have as a consequence of this collection of deals will result in opportunities for savings in other areas which will likely substantially reduce outgoings that were previously expected. just one example, if they end up borrowing less, then a reduced interest bill with interest calculated at around 10% in Brasil that could really add up. The net cost of this money is not going to be as bad as some imagine and on top of that, they simply needed the money. Another prediction from me :) With al little more distance and hindsight many will view this past two weeks as the company making period for AVB.
AVB Price at posting:
7.9¢ Sentiment: Buy Disclosure: Held
