Thanks trousergecko! Thanks for the feedback really appreciated....

Thanks trousergecko! Thanks for the feedback really appreciated. I was going through HIG (Copper in PNG), they got similar (to some extend) deal with Xstrata.

1) Xstrata will spend $250m to complete studies, HIG been the free-carry similar to BML (please read HIG's 26/11/2010 announcement on Frieda River FS Announcement)

Here is some abstract...
"Xstrata as project manager has approved a US$122m budget for the feasibility study phase"
"Xstrata is required to deliver the feasibility study by Jan 2012 to maintain their 81.82% interest and management rights in the project. Highlands (ie HIG) is free carried until the completion of the FS"

Every project is different, but I think you will find feasibility study is very expensive. So to go from 40% to 70% (that is 30% increase) it will cost BCL a lot more than just $4m.

From 0% to 40% (ie 40% increase) - cost could be more than $4m (as it could cost more to explore)
From 40% to 70% (ie only 30% increase) - cost could be much greater than $30m to complete the study by BCL

So it is not a linear scale calculation (ie 40% worth $4m, 100% worth $10m).

Most of BML holders don't realise how much more cash needed if we don't have this JV partner. Even if feasibility study cost only $10m, we will need a massive dilution to get there if without JV partner.

Any feedback will be appreciated. Thanks everyone.