AxiomKB will be the operating company and it will be the entity that undertakes the mining and I would think purchase the equipment and plant etc etc.
AVQ has an 80% equity interest in AxiomKB. The landowners have the other 20%. The JV company will have to repay the Capex and fund the Opex.
The landowners have a free carry in that they don't have any funding responsibilities. I don't see this as anything but reasonable. If they had opted for a royalty off the top they wouldn't have had to put capital up either. They have opted for 20% off the bottom.
They have in essence put their land into the JV so they have definitely contributed.
AVQ Price at posting:
26.3¢ Sentiment: Hold Disclosure: Held
