Ann: Evolution signs $18M JV with Musgrave, page-19

It's a very good deal in my opinion. EVN is only farming in to the Lake Austin tenements and they have to spend minimum $4 million (not an insignificant sum) before they can withdraw. In total they have to spend $18 million to earn 75% of the Lake Austin tenements (a very significant sum). MGV retains 25% interest. If EVN withdraws before the full $18 million is spent the project reverts 100% to MGV. Also if the project is to be developed in the future EVN will provide finance to MGV for it's 25% share of costs to be paid back from cashflow from the development. The deal means that drilling at Lake Austin will be cranked up significantly, which is excellent since I'd much rather have 25% of a significant discovery than 100% of under-explored but promising ground. EVN obviously rates the project as very promising otherwise they would not have agreed to spend so much ($18 million) for 75% interest.

An added bonus is that the deal does not involve Lena, BOD or Mainland. This means that MGV can keep adding to these resources and have this as an altogether separate venture to Lake Austin - conceivably they could even do a separate JV with WGX for these tenements. An added bonus is that EVN has subscribed for $1.5 million of shares in MGV which provides more funding to MGV for further drilling at Lena, BOD and Mainland.

An excellent outcome IMO. Fingers crossed for drilling success. GLTA and DYOR