WSR agreed to this JV with MTX...I mean 20M dollars for 50%...That is the most expense JV I have seen. The only conclusion I can come up with is both management teams are very bullish on these claims and MTX will not let it go cheap and we think the goods are there but know we can walk away at any time...But still sounds very expensive to me...Anyone else have thoughts on this deal?

Hi Glorieux,

If you compare the three WSR JV you see the following:

1. NOT : 9.600 acres, 50%, C$ 5M exploration, 400.000 shares, C$ 400.000 cash

2. BMK: 27.660 acres, 75%, C$ 2,5M exploration, 5M shares + 1M warrants, C$ 100.000 cash

3. MTX/ADD: 52.980 acres, 50%, C$ 20M exploration, no shares & cash

If I compare the land package of the three JV, then they have to fund exploration expenditures per acre of :

1. C$ 521 for NOT JV

2. C$ 90 for BMK JV

3. C$ 378 for MTX/ADD JV

So the BMK deal is the cheapest (and 75%, but shares plus warrants plus cash), then MTX/ADD (50%, no shares & cash) and NOT (50%, but less shares & cash compared to BMK) being the most expensive one.

But still effectively a lot to pay on the MTX/ADD deal, so all parties must be very confident in what they have staked.

FANTOMAS