chalice and enamco reach agreement, page-10

Legume, the points that you have raised are very valid; but from a pragmatic point of view, what would be achieved by saying 'we've done a deal but we're not happy...'? The market is applying a value to the project, risks and all, that isn't far off what has been paid, so saying that it is worth more is all well and good, but actually completely meaningless until real progress can be demonstrated.

It's all well and good to say that the Directors didn't push hard enough, could have got more etc etc but this misses the bigger picture; it's the law of the school yard and the government in Eritrea is the biggest kid in the sand pit.

As suggested, CHN could have pursued a NPV assessment but that would have delayed progress and more to the point, it would have caused ongoing difficulties in the relationship with the government - much better to reach an mutually acceptable deal (albeit more acceptable to one party) and get on with things.

The completion of this deal signifies the clearance of another hurdle along the path to development, the government is now financially committed to the project and from here in this deal 'clears' the decks to pursue project financing on clear terms.

Dont forget that Nevsun were 'only' paid $60M to be paid from cashflow (from memory) for the stake in Bisha, but they have moved on, played the cards they were dealt and built a successful project and billion dollar company