..more of the puzzle.

I see that BMO have now acquired a plant and announced their reserve. Looks like it is all steam ahead.

From the details on the plant purchase supplied, they will have a fairly low milling cost as the Plant is essentially a lease in money terms.

Even if SMC don't exercise their option to repurchase, BMO would doubtless be able to sell the Mill to someone else and recover a least their purchase price. So the cost to BMO is (1) refurb, (2) R & M and (3) any upgrades. This would be no more than any other owner except that they are virtually assured of a buyer when they sell.

Would seem to me that they are going to use this as an interim (3 year) step with the view still being to build a mill at Twin Hills.

Reserve conversion looks to be good and would imply low levels of dilution.