ok tedi gears up for frontier jv projects, page-6

Good question denver. Who knows, but I imagine that OTML wanted Bulago bad, and Frontier held on to as much as they could. To my mind it was a very very good deal for FNT in doing the $60m JV with Ok Tedi, with the funding including non-diluting carry up to completion of BFS after a $12m spend on each of the 5 leases that are part of the agreement. I think the percentages that FNT were left with reflect the amount of work done as well as the prospectivity of the leases. However, OTML can up their stakes in the leases at market price, possibly before but more likely after the $12m has been spent per lease.

Why was Andewa not part of the JV deal? Again, who knows but I suspect that Frontier wanted a flagship project for the company to carry on with by themselves in PNG (unlike COY which is largely at Barricks whim and which PM subsequently left), and would be surprised if there is not some sort of 'gentleman's agreement' for OTML to buy in at market price and/or fund the development if a certain size deposit is found. Total speculation I know, but it would make sense for both companies to maintain the relationship in this way. First though, they need to find the big high chargeablity beast that beckons!!