Celeca The open agreement is fine for Denison and other parties who may choose to sign up. As I read your post the agreement you address is for Denison to acquire ore at the mill gate.
The post did not mention tolling ore through the plant. It appears a new tolling draft agreement is being prepared by Denison for consideration by WCU.
The issue remains the same. One mill being offered to a third party on the basis that Denison will buy ore at the front gate or toll treat ore. From WCU's point of view the rate for acquisition or tolling has to be commercially viable. Only WCU can determine this based on its position - not Denison's.
My question is what if the rate (either acquisition or tolling) is not viable for WCU and therefore not acceptable to WCU? Does WCU defer the project (keep the ore in the ground) or build its own plant?
I trust (hope) negotiations arrive at a commercially viable outcome for WCU but dont take for granted that its all honky dory.
WCU Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
