I am not a mining engineer but my understanding of the HOA back in Jan 2017 was that it has too many moving parts and therefore got replaced by a BTS later in May. Curious about why Billabong chose this HOA instead of the BTS. Anyway, like you said, say at the first JV meeting, the parties agree that the total CapEx will be set at say 15m reflecting todays costs. Then Billabong has a choice of contributing 3m to get 20%, as that’s the maximum they allowed to contribute by the offer. Both parties then contribute into the JV according to their proportions. Or if developing K2 doesn't make any commercial sense at the first JV meeting, Superior can simply walk away, save the 3m and mind their own business. Hence Vango and Billabong both full-filed their obligation of the offer and case closed. I still failed to see any downside for Vango.
VAN Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
