The loss of cold in the circuit etc depend significantly on the deal that you strike with the mine operator (toll milling v toll processing), how you feed the ore through the mill (high grade to start, low grade to finish) etc. There are so many ways in which a company can control this, especially if they are good at what they are doing, which the BML team are. I've asked around and I haven't heard a bad word about them as people or as operators. Two big ticks in my book.
@OldCar, there should
not be a 20% loss to KWR through the milling process, see above. As previously outlined the mill is not 'free' it comes with a $1m payment to Hobba over several transactions, and will cost
at least $5.5m to refurbish. Further, those who know of the mill, and there are a number of long term industry players who have commented on it, do not consider that the mill is worth refurbishing, and that is putting it politely. The merged entity will not have anywhere near enough cash to address these costs, they will have to raise a significant amount of capital and/or raise capital and rely on KWR's JV with BML.
If you read the Merger Announcement, you will notice that it states that:
(quote on page 2)
The transaction is an outstanding opportunity for Kingwest given the ability for Kingwest’s high grade open pit ounces to be processed at Brightstar’s infrastructure located in Laverton. Top of page 3)
particularly the near surface high grade mineralisation at Menzies, with the ability to access to Brightstar’s processing infrastructureThe proposed merger doesn't appear to be particularly inclined to truck 'low' grade ore from Menzies to Laverton.
Further,
@OldCar KWR is currently at
all time lows. Worst case, would it not be more beneficial for KWR to profit from the JV with BML, increase its cash reserves and/or resource at Menzies through deeper drilling and then re-consider its position? What is KWR's rush to merge at all time lows? The potential to merge with BML has existed for years.
Finally,
@Menudog@VivaLaFrance@LawyerTrader@Skipadawg@Artic my apologies regarding the bounce back. Google / Gmail did not appreciate the number of emails that I sent out (in excess of 500).
However,
[email protected] is active and receiving emails. To be clear, nothing sinister
@VivaLaFrance, just attempting something with Gmail that I hadn't before. Again, apologies for the confusion.
Finally, I note that there are some direct comments regarding individuals and directors. I am not publicly endorsing or condoning any direct attacks. I have to date not made any accusations against individuals or their purported interests or reasons for this merger. This action is currently only intended to utilise our shareholder rights and vote against a merger that we (myself and those voting with me) do not see as beneficial (or at the very least, less beneficial) than the alternative(s).
