plan and simple, page-37

that $40m is irrelevant. It's the maximum possible & would be at least 2-3 years away as it's based on JORC compliant measured & indicated; that takes a lot of drilling, which Vale haven't even started yet. but good deal anyway.

"4. Based on drilling results Vale will pay Avanco a royalty for any in-situ JORC compliant iron ore resources in the measured and indicated categories."

"5. On Avanco receiving funds from Vale inclusive of 1, 3 and 4 (above) estimated at US$10,000,000 or more, Vale will have satisfied conditions precedent and will have earned the right to complete the acquisition for sole ownership of Trindade North. The total sum of all qualifying payments to Avanco is capped at a maximum value of US$40,000,000."

We also don't know how long the qualifying goes for. I expect Vale will drill to get 100% ownership (IF they find what we THINK might be there) & AVB get US$10m (2-3 years away). If I was Vale, I'd then stop drilling, so as not to trigger the other $30m.
However, the $'s along the way; $350k yr1, $500k yr & $1m yr3 will be very handy for AVB. But any talk of $40m just isn't relevant.

Also remember this is still a relatively small deposit (so far). The BIG uplift can come if they proceed with their stated potential to "direct ship copper ore". Very little cost to just dig it up & ship. THAT will be the biggie. Further infill results will also push SP, but key will be decision to direct ship, OR NOT. Plus any extension of this ore body which is open &/or good finds on other tenements.

I sold half at 5.7 (closed 6.5 & was 8 next day; typical for me). But very happy with 100% of my cost back & a locked up 30% profit. If I wasn?t so bearish, I?d be averaging UP.
Overall I?m now 95% cash in my super bearish state & will remain that way until the big crash or a year goes by. But good fun punting on interesting specs like AVB along the way.
Cheers,
Ned.