Fantastic news - follow this...
KATX does not have to spend a dime on exploration. Vale will do it and they will have 3 years to determine what really lies beneath Lucky. Vale will spend up to $750k of their own money in digging/evaluating the true in-situ value. In return they get 80% of the findings.
Worst case scenario - Vale digs (spending up to $750k in next 3 years) and determines it's not worth anymore investment.
It hasn't cost KATX a dime and we end up with $95k (not much, but if it turns out to be worthless, better than in the red exploring).
Best case scenario - Vale digs and deterimines the in-situ value is very much like Zambia belt. They get 80% / KATX gets 20%.
So what would 20% of a zambia belt-like discovery be equivalent to? Hold on to your hats....
Zambia has produced 400,000 to 700,000 tons per year of copper.
Do the math. If KATX gets 20% of 400,000 tons = 80,000 tons per year x $5,800/ton (current price is 2.93/lb) that is ...oh my....
that can't be right?!?!
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