Assuming Austral take up the option of buying the 19% for US$1m they can then buy the remaining 30% that TRY will still hold for US$7m (more if POS is over $16) over 3 years.
Casposo has a current LOM of 4 years so I presume Austral will only take out the option of buy try completely if they can extend LOM further. I think that is a real possibility, I recall Paul Benson saying that the epithermal nature of the deposit suggested it was highly likely more deposits would be found. There was lots of targets identified but as things got worse they were never followed up.
Austral Management seem to be well connected in Argentina and with signs of improvements in the economy they are well placed to make Casposo come good. It's also a good sign that Austral have got Casposo up and running so soon, I don't think that was expected to happen this year
TRY Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
