Another take on the trading halt may be that some new joint venture might be in the wind? Why would you have a trading halt just regarding Coyote running down? It's been known for a long time that it's scheduled to stop in June. Bringing that forward in the current circumstances is not such a big deal. If it's just a technical/economic decision as to whether or not to proceed with Kavanagh and not involving negotiations with other parties, what would be the problem in just announcing it then and there after a short intraday trading halt?
From the last Kavanagh announcement we have:
"Coyote – Muttley Lode The operations at the Coyote Mine are focussed on the Muttley Lode which is planned to be largely mined out by the end of June 2013. The Board will need to be satisfied that the technical and financial evaluation for the Kavanagh Resource justifies its capital development before any deployment of capital occurs.
Corporate The Company has entered into initial discussions with other companies regarding the possibility of joint ventures or possible corporate arrangements. Although normal confidentiality agreements have been executed, no firm indications of any possible arrangements have yet emerged and may not eventuate."
Posters such as Htree who are knowledgeable about technicalities seem to agree with the assessment that it's a moneymaker if things are "done right".
My guess is that they've been working hard on the technical and financial justification for Kavanagh and perhaps the "possible arrangments" are about to eventuate.
Finalising negotiations such as this would justify a trading halt of a few days, maybe even longer. From other posters, it would seem that capital required for Groundrush/Ripcord would require some kind of joint venture or another very major cap raising (not a good time for that!). Maybe later next week we will have a new partner and a new sp?
TAM Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
