The way I read it the $80m is funding for the JV and covers the contribution of KDR. That means SQM contribute 40m for their share and also contribute the 40m for the KDR share.
That is a common practice for these type of JVs in the first instance. Once the 80m is used up then both companies contribute their share of capital equally from then on.
Effectively, SQM are paying KDR 70m for a 50% share of the resource that will be subject to the JV. What we don't know is how many tenements are being put into the JV. For instance, are the tenements recently acquired from WSA being thrown into the JV or not?
Lots of info needed before a proper assessment of value/worth etc etc can be made.
Cheers
KDR Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
