Interesting story thanks for pushing me to look into it. I did some reading which does make the sale make much more sense.
Sipa first mined it 1998-2004 for ~350koz, then sold the plant in 2006. Newcrest JV'd with sipa and spent 20mill on exploration. NST picked it up in 2011 for royalties only (its refractory so more expensive CAPEX/OPEX), spent more money then POG collapsed in 2013 down to $1300/oz so they abandoned the project mine plan. So Newcrest and NST spent all the exploration money - theres that answer.
then KZR comes along
"Under the terms of the agreement, Kalamazoo will pay Northern Star:
1. $5.0M on mining of the first 250,000 tonnes of Ore; and
2. a 2% Net Smelter Royalty (“NSR”) on the first 250,000oz of gold produced, with a 0.75% NSR on
any subsequent gold produced from the tenements; and
3. the same NSR’s will also apply on any other metals produced from the tenements.
A pre-existing 1.75% royalty on gold production (excluding the first 250,000oz) is ap"
I dont see the 17.5m mentioned anywhere. Just 5mill and a NSR. What a deal. But as you said never paid it as never mined it - flipped it!
I suspect the planned plant to mine this type of gold would be very very difficult if not impossible to finance for KZR hence the low $/oz sale. DEG has the ounces to justify their plant and this is just feed for very cheap. Its of no use to anyone else - even though Ashburton seems like a great deposit.
In a nut shell KZR flipped a project that they couldnt develop anyways for alot more than they paid. Good corp deal.
Goes to show not all ounces are the same.
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Interesting story thanks for pushing me to look into it. I did...
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Last
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Mkt cap ! $16.36M |
Open | High | Low | Value | Volume |
9.2¢ | 9.2¢ | 9.0¢ | $16.48K | 182.2K |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 23013 | 9.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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9.5¢ | 30525 | 2 |
View Market Depth
No. | Vol. | Price($) |
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2 | 23013 | 0.090 |
2 | 66018 | 0.089 |
1 | 50000 | 0.088 |
2 | 35000 | 0.085 |
1 | 12355 | 0.081 |
Price($) | Vol. | No. |
---|---|---|
0.095 | 30525 | 2 |
0.096 | 25899 | 2 |
0.100 | 100000 | 1 |
0.105 | 209532 | 2 |
0.110 | 111500 | 2 |
Last trade - 11.24am 06/06/2024 (20 minute delay) ? |
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Open | High | Low | Volume | ||
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Last updated 11.09am 06/06/2024 ? |
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