You are correct that the Stage 2 update does not tie in directly with Stage 1. $12 million from BlackRock is for Stage 1 so the conditions attached to the deal are relating to Stage 1. There are two full mine licences being sort by AVB. One for Stage 1 and one for Stage 2.
What today's announcement leads to is that by progressing the Stage 2 Mine Licence, AVB are confident that the Stage 1 Licence will be a matter of when not how.
Once we have the Stage 1 Full Mine Licence (and upgraded JORC) then we can have the $12 million from BlackRock to develop Stage 1. Once Stage 1 is producing, AVB will secure finance for Stage 2.
Where it gets complicated is that BlackRock are guiding AVB towards opening up Stage 2 at the same time. This is because Stage 2 makes BlackRock the money.
Originally AVB had a plan of mining Stage 1 and using the proceeds from this to develop Stage 2. Now that BlackRock has come onboard, the whole game has got a lot bigger. That's a very good thing for AVB.
In conclusion, the underlying message from today's announcement is that progressively Stage 1 and Stage 2 are being joined into one project.
AVB Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
