The agreement with the two landowner groups was definitely on the basis of a free carry. It says quite plainly that it was in the early announcements in 2010 and also Wilsons HTM in their research document some time ago (I think 2014 or 2015) clearly references that their 20% is on a free carry Basis.
What this actually means I am frankly unsure.
I would be very surprised if the "free carry" meant they didn't share in any of the costs as this would imply a 20% royalty in effect.
I would imagine that it means that the landowners will not need to contribute any equity and will not need to fund any costs or losses in a cash sense BUT that any entitlement or profit share would be calculated including deductions for these expenses.
So essentially a no capital cost no risk proposition for the landowners.
AVQ Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
