good questions GT …….firstly there was initially a strong intent to mine K2 however 5 things happened: the dewatering and the sidewalls of the original mine collapsed both created an exponential increase in CAPEX, which ZAG couldn’t agree to after 2 years of discussions and extensions, the BTS therefore just elapsed as a 7th extension to the expiry date was not mutually agreed upon, thirdly the fees under the original OTA would have seen VAN losing money whilst producing its own gold, therefore an alternative of building their own mill added further pressure to the CAPEX, in the mean time VAN’s 3 drilling programs and JV with LSR literally unearthed bonanza hits of high grade gold and other minerals , the recent drilling program also established high yielding low cost open pit potential .Therefore the mining plan had changed. I don’t understand your question re the lawsuit with ZAG won’t go down well? Besides half of ZAG’s of $22m claim is in relation to the Purchase and Sale Agreement which is not in dispute as both parties are fulfilling the conditions of the PSA, there is no breach ! So what is the Judge going to rule on? Secondly the BTS which is in dispute just elapsed under the terms and conditions of the BTS but more importantly the judge in his 68 page ruling in the Billabong case highlighted the challenges and issues with the BTS which is why the board of VAN is more than confident of a successful outcome with ZAG , any shit can happen in a court of law but as VAN has stated ‘bring it on’!
VAN Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
