I was on the investor call yesterday afternoon with Chris and the team. I asked the same thing about the terms and apparently they are actually quite good for this sort of deal. As has been stated elsewhere in this thread, there will be serious funds needed to continue this exploration program. If we have to do a cap raise every time then the dilution impact for existing shareholders will be massive over the next two years.
One of the benefits of this deal is that Newmont are already offering the back-end deal to progress to production (a seriously expensive prospect). Yes, Newmont end up with 80% ownership, but there is essentially no risk to Legacy. If it progresses to mine build and production, Legacy would need to chip in $50M, $100M, maybe $200M to fund their share of the operation. The terms of the deal state that this would effectively be done as a 'loan' from Newmont to Legacy and we would only pay it back out of the profits from production.
So with essentially no risk to us, we could end up with a 20% stake in a 5M+ Oz gold mine. Back of the envelope calculation values 5M Oz of gold at about AUD $15 Billion. If you assume the AISC could ne AUD $1,300 per ounce, then you're still making $1,700 per ounce of gold once you've factored in the not insignificant cost of building a mine. Even if it takes you a decade or more to pull it out of the ground then you're still doing just fine.
If there is a significant discovery at Bauloora then existing shareholders stand to do VERY well out of this deal. Newmont would not be interested if they didn't believe there is potential for a big discovery. They don't do small mines.
JMHO
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