Oh boy, here we go again, another completely incorrect statement by you. This is a fantastic deal for KATX. It's quite clear that Vale is interested in Lucky, they staked everything else around it. So it's quite safe to say there will be no problem for them to actually do "work" on the property.
They didn't give anything away. It would cost around 50 million to do a feasibility study on Lucky. With an 80:20 deal, that as I am sure you are quite aware of, means Vale will pay 80% of that 50 million. In return, we "only" get 20% of the profits from the mine, but considering Lucky could be worth 5 billion or more, I will be more than happy to take 1 billion of that and boy would that look great on balance sheets!
Company worth only a few million inks JV deal with Vale worth 1 billion dollars!
The fact of the matter is you continue to be negative, and you continue to take thigns out of contex. KATX doesn't have the money to do a 50/50 JV with Vale. They couldn't put up 25 million just for the feasibility study, not even counting all the other costs they would have to split with Vale down the road.
For a small company like KATX, this was a fantastic first deal that sees us spending very little of our own money for possible massive returns. If you are an investor of this company, this is EXACTLY the type of deal you want to see made.
News 
Market Data 
Discover 
