I was of the undersranding if that Vale wanted to extend the option for the a third year then they would have to pay Avanco 1million dollars or they could just walk away,and since they are in discussion without the one million being paid tells me that they could be negotiating a price for Trindade and Vale are probably trying to get it for a song.
I wouldn’t think Avanco would hire a lawyer for the sake of a million dollars, but could understand hiring one if there is multi millions involved.
Ragardless of writedowns you wouldn’t walk away from something that is going to be of great value down the track especially if you can get for a song.
Only time will tell how these discussions pan out, but this is what I think could be happening but I’m probably way off the mark
AVB Price at posting:
7.6¢ Sentiment: Hold Disclosure: Held
