When considering the time involved in permitting and building a new mill in plutonic dome, the cost of which potentially in excess of $100mm+, it is much cheaper for Vango to acquire Superior for $7mm net just to get access to first 5000tpd mill, which has been recently refurbished. Second mill is just a bonus as well as the camp, airfield, power plant and long term natural gas contracts priced below market. Even with plutonic underground exiting 2022 at 1mmt muck production per year, that leave potentially 2500tpd unused spare capacity at just first 5000tpd mill which Vango could easily fill from the several open pits that are adjacent to Plutonic along the haul road running to K2 as well as from Trident.
VAN Price at posting:
3.6¢ Sentiment: None Disclosure: Not Held
