It's a small deal for Vale - as a large company they have potentially taken advantage of KATX for the most minimum of committments.
YES, it's nice for KATX to have a relationship with Vale but I believe you are over-'selling' its importance!
Reading all KATX' posters, the hope-thread I see is too much enthusiatiasm in regard to what has/is happening. As I've previously stated. "There are so many neophytes here to see any clarity."
ALL hopes are with every KATX owner - only time will tell!
It does NOT take $50 million to do a feasibility study !!!!!!!!!!!!!!!! If Vale goes all the way at Lucky they will do the feasibility study internally. But no matter who does it, it does NOT cost $50 million. I've done 2. But on top of any feasibility study there is the Environmental Assessment Report and documentation that all Companies have to do in order to get Government permission to build the mine and the concentrator. This is not especially costly but it is extreeeeemely time-consuming and frustrating. Anyways it WAS a crappy deal KAT made. They got peanuts cash up-front and NO work commitment. EVERYBODY ELSE negotiates and gets a work commitment out of the BIG COMPANY. Vale gave them no such guarantee.
As you probably remember I disagree as much with your assessments as is possible. I think this was an outstandingly lousy deal. If there is ore worth billions of dollars it would have been a much better alternative to spend a limited amount of money on initial drilling to get better terms for what comes next. I find it almost incredible that Ken could enter into such a bad deal.
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