Hey Poet...nice postFollowing our conversations...looks like you...

Hey Poet...nice post

Following our conversations...looks like you put together a logical course of events...I suggest everyone go back and reread this post...it potentially sheds light on current developments...i.e. connect the dots

Today’s announcement is another major step forward...MARK 2...Does anyone seriously believe TP etal would do anything to materially harm AVB’s future; particularly with Glencore/Exstrata and Blackrock breathing down their respective necks.........I think not !!!

The main feature of the previous BR announcement, is that the arrangement is designed to minimize dilution...not necessarily avoid it...It is a question of timing...you will recall BR’s requirement for a mining licence fully granted by the DNPM...to be converted from a trial mining licence...BR needs more insurance from potential liability...Also, BR requires increased confidence intervals in JORC in particular indicated reserves at AN...Understandable, given some of BR’s previous history with explorers...

As of 15th Sept2010 BR appeared on AVB’s the register. The $20 million CR for 200 million units @ 10 cents... So they are sitting on an investment loss...So AVB needs $12m now to trigger Banco Votoratim $58 million for pro-rata draw down of both junior and senior debt facilities to initiate mine construction and plant production facility to be built for ANTAS NORTH COPPER MINE... AVB needs working capital and extra for onsite production OPEX contingencies and exploration OPEX enhancing PB JORC numbers etc and also further potential exploration budget for future Stage 3...PB with its need for major plant CAPEX can wait for positive revenue streams from AN...has anyone now adduced from this flow of events AVB definitely needs to be fully funded moving forward...Experienced investors recognize this immediately and don’t panic or jump to miscalculated conclusions...

I have said this before...but it is worth repeating...the AVB board of directors and the technical staff ...TP has assembled is easily one of the best I've seen...BR KNOW THIS...that is why they are there prepared to stump up the cash...TP has a history of methodical reasoning...this current announcement is no different...I fundamentally believe it is a question of timing ...logically they don’t want to waste time ...so IMO connect the dots between the 2 announcements and you quickly assess the need for continual funding capacity throughout all development cycles...Any discussion re: VOR is just nonsense...AVB has indirect possessory rights NOT legal rights to some “interesting” mining assets in the Eastern Block tenements that is all and has nothing to with current issues relating to the last to announcements or it would have been mentioned...

Yes BR is showing a loss including capital and holding charges on AVB since buy-in at 10c three years ago...But in relation to some exploration Companies BR are not that far behind with AVB...However their investment in AVB does show SIGNIFICANT potential...as they say “in for a penny in for a pound” ...Also, inconsideration of the fact they want a solid commercial ROI for LOM at AN ...But in particular a solid return for PB over its longer LOM ...BR is currently behind with its AVB financial input...but with a strategic ramp on its economic modelling of AVB this will be reversed over LOM of both stages...meaning IMO it’s all about the previous announcement citing the relationship AVB is building with BR...Reread it

The deal proposed by BR involving net smelter royalties has the potential to be a solid earn for BR...Any DCF calculations for each of the NPV’s instantly proves this...However, BR earnings are restrained up to year 5 ...meanwhile AVB’s predicted growth trajectory results in 10 to 12 bagger potential as per profitability projections over the same time interval...BR may carry higher risk, as its $12m requires NSR’s..As you say Poet it is not on AVB's books as debt, which naturally is a plus for AVB... It is tightly linked to successful and profitable mine and production operation. Hence, as you have alluded to the stated need for explicit due diligence by BR...So, predictably additional drilling for JORC upgrade, onsite sterilization and geophysical approvals would be a requirement..additionally all preparatory pre and post engineering work to be initiated...With Trial Mining Licence already approved and more expected boxes to be ticked for DNPM requirements...Full Mining Licence should potentially be only months away based on DNPM’s previous history....

As you say Poet, initially puzzling that PB and future mines should be the subject of NSR to BR...since only financing AN for $12m...but having the ongoing financial support of a substantial mining financier like BR is a real coup for AVB....a literal force to be reckoned with...as I see it a win=win for all parties...In consideration of PB.. NSR only ever comes to BR in year 4, 5 and 6...and if PB is fully financed and in production...So BR has a huge INCENTIVE to see PB operating...but only gets 3 times multiple, while AVB and shareholders over the same time frame goes potentially 10 -12 times...So therefore BR will need to finance it, and unlock its NSR for itself...We don’t know at this point in time but if PB requires $100m plus for CAPEX and presuming a very robust BFS completed, then the key for BR to unlock this stream of NSR is to facilitate mine construction for initially AN...Some bridging or revolving capital potentially required getting PB over the line; based on my own experience of explorers crossing the difficult hurdle to “mining and production” status, this may be potentially the reason for the current CR...I would argue, given the strong mining asset base that exists in AVB’s portfolio, investors should trust there better instincts and IMO pursue a “glass half full” scenario...

So AVB takes a relatively small haircut on in-ground metal on my calculations approx. net < 3% > and to carry on necessary preliminary engineering and drilling requirements...a CR upfront will deliver results for AVB shareholders [including BR etal]...Further, BR’s due diligence was completed and as per previous ann. the recommendation was to proceed...Also, knowing fully the economic modelling for AN’s key project parameters hold water [i.e. IRR still above 90%]...For AVB, a significant outcome here with BR’s obvious strong support in AVB management at this point in time...As I see it, the CR potentially fast tracks AVB’s trajectory to mid tier miner status sooner, not later...sounds good to me...

Dyor...