"HAV would have gained great value from the drilling paid for from the deal both in the Strategic Alliance areas and in HAV's prospective areas outside the Strategic Alliance and paying the corporate costs too ."
Including the monthly $1.0 million payment (the Upfront Investment), OZ Minerals said on 17 May 2022 it expected to spend up to $76 million during the Kalkaroo Option to undertake the Study Program and for exploration activities at the Kalkaroo copper-gold project and on Strategic Alliance exploration activities.
To put that $76 million potential spend into perspective, Havilah's market capitalisation is currently $73 million.
If the Kalkaroo Option is not exercised, Havilah would retain ownership of the Study Program data and Strategic Alliance data and the value of BHP/OZ Minerals’ investment in Kalkaroo would continue to be available for use by Havilah in advancing Kalkaroo.
To date, the following amounts would have been paid by BHP/OZ Minerals:
Kalkaroo Study Program
BHP (via its wholly-owned subsidiary OZ Minerals) is funding a Study Program to aid in determining whether to exercise the Kalkaroo Option during the Kalkaroo Option period (expires on 10 May 2024, if not exercised earlier or further extended).
To support this work a 45 person fully catered camp has been constructed on site to accommodate all personnel.
An important component of the Study Program work is diamond drilling, with 2 diamond drilling rigs operating on Kalkaroo ML 6498 for most of the year. The initial 30 hole diamond drilling program has completed, assay results are expected in the short-term.
I conservatively estimate the spend on the Study Program, so far, at $15 million.
Orexplore
Drill core and sample scanning work being undertaken by Orexplore on the Kalkaroo deposit, that OZ Minerals Limited is paying $2.35 million for, is covered in Post #64025041
Orexplore is now scanning exploration drill core (presumably from BHP/OZ Minerals' diamond drilling work on the Kalkaroo deposit), which spend would not have been included in the above $2.35 million.
Strategic Alliance Exploration Activities $4.5 million ($500,000 times 9 months).
Non-Strategic Alliance Activities (which can be used for general working capital and corporate expenditures of Havilah) $4.5 million ($500,000 times 9 months)
Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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