I’m baffled why they didn’t.
They must have gambled on them winning the independent value being in their favour and missed the chance to accept Shaun’s $85m.
Must be kicking themselves.
If you look at the Sprott note they quote a figure of $276/oz in the ground
On the reserves alone the value comes to around $42m.
This can be the only reason not to take the 5% for $60m.
Their hurdle of 15x the initial investment fell short.
If you look at it another way
$1800 gold price less $1000 AISC (for clarity)
160,000oz 5% ore reserves = $128m revenues
$60m x 15 =$900m
That seems a bit short sighted to me, if it had been a green field fresh start on new mine, I could have understood it.
What if the gold price does rise to $2,500 and what if Hav north comes good or the EB doubles in size they will have missed out big time.
But they have said they are comfortable with 70%, so fair play Sandeep thank you very much you’ve been a great partner keep it up