Yes - well, maybe Grant can negotiate a JV with the Tanzanian Government (TG) and somehow ditch Tremont in the process? I can see that working out well...and, then there is the deal itself. Based on Barrick's experience, PHL will own 84% of the project and TG will own 16%.
Based on the Tanzanian Government's negotiating position, the ownership split doesn't translate into 84%/16% of the net benefits. No, PHL and TG will share these on a 50/50 basis. Now that's fair enough isn't it??
But wait - there's more ... in order to get the deal with TG, I'm sure PHL would have to agree to invest big bucks in skills training in mining for local Tanzanians (Barrick had to invest $10m for this) and, on top of that, up to $40m to build roading, housing compound and related infrastructure.
Actually, what happened with the prison PHL was going to build for the TG? Did that happen?
All in all, a bit of a one sided JV I reckon.
CXX Price at posting:
5.1¢ Sentiment: None Disclosure: Not Held
