nUmbaz, just take a look in HAV's back yard. Portia was 50/50...

nUmbaz, just take a look in HAV's back yard. Portia was 50/50 with HAV putting up the plant and operating costs and 15% revenue with no cost obligation.

HAV would be very foolish if they did not accept any reasonable offer from COB to mine Mutooroo and take a royalty/share of revenue. The dirt could sit in the ground for a long time before another offer comes along. That could benefit both parties as it gives upside to COB and risk free income to HAV.

The question in my mind, is whether there is any reason why COB would want to mine Mutooroo over their own resource?

I think Mutooroo has a higher grade and is from surface - therefore lower start up costs. I don't know if COB is from surface and is any difference significant enough to make COB want to mine Mutooroo first? Could they start a smaller scale production on Mutooroo, get all the kinks work out before going for larger production on their resource.

Any thoughts Clark888 or anyone else with a geo background who understand this better than I do?