A JV like how bay structured it is extremely common. One could find hundreds of examples where the major takes 50% with optionality to earn 75-80% in exchange for usually around 5m in drilling. Buxton resources is one example off the top of my head with IGO. Deals slightly vary but this is very common for a cash strapped junior like bay was. If people are interested I can add some additional context on the TSX and capital raising for mining there.
Bay obviously had GREAT confidence in it because they went straight to working out a bigger deal with AW1 which is a win-win for both sides. AW1 gets 80%, more than 10m of drilling has taken place and even more will take place with bay free carried until FID. This is a great deal for bay but also for AW1 who is getting 80% of extremely prospective ground.
On a side note here, anyone also a bay shareholder?
AW1 General Chat, page-2458
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Last
12.0¢ |
Change
-0.005(4.00%) |
Mkt cap ! $62.12M | |||
| Open | High | Low | Value | Volume |
| 11.5¢ | 12.0¢ | 11.5¢ | $39.03K | 326.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 1520975 | 11.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 12.0¢ | 169362 | 2 |
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| Last trade - 16.10pm 29/07/2024 (20 minute delay) ? |
| AW1 (ASX) Chart |