the pmm deal, page-4

Fidel,

PMM have some operations around Mt Richardson apparently. Given that PMM will have existing infrastructure and operations in place, the benchmark for Mt Richardson to be economically viable is far lower for PMM than it would be for IRM (IRM would have significantly higher costs to turn this into a mine than PMM would have to)- therefore PMM will more than likely be able to make the numbers for a 10 Million tonne resource stack up whereas IRM would need this resource to be larger than 20 Million tonnes to make it economical to mine. On this basis PMM would be prepared to part with 10 million and royalties to acquire the tenemant.

All in all, this is a good deal for both parties. Seems that the market disagrees however.