An excellent strategic deal with a major company. More Carajas copper ground, to support AVB as a growing Copper Company.
I was wondering if the new ground that has been indicated for a while would adjoin/extend an existing tenement. And fortunately it was available. Luck!
Major road running through the middle, plus power via a substation also I assume.
The more AVB shows a willingness to actively drill, the more people will release ground to them. An Iron Ore partnership with Vale, and now a prospective copper partnership with Xstrata! hi-5!
Clearly I cannot claim knowledge of the politics of it all but I suggest this deal could help to stir Vale into action to also release more ground to AVB in a similar JV deal. The ball is in Vale's court to do something similar or be left out.
They would not wish to be left behind, and the fact that now Xstrata Copper is also taking real notice of AVB and what it is doing (!!) could likely lead to some interesting share moves one day perhaps? The big boys are circling so watch this space.
I would not think the market will react too much though, because after all it is simply new ground and avb still has other largely unexplored tenements to start... BUT a very significant step in building AVB into a successful and long term presence in mining/exploration here.
... and of course the next round of results coming up, which must be good surely?!
Anyway full marks again to Tony Polglase, and sincere appreciation too.
AVB Price at posting:
12.5¢ Sentiment: LT Buy Disclosure: Held
