Ann: CAP and Pure Metals agree new JV to develop , page-4

re: Ann: CAP and Pure Metals agree new JV to ... Am I alone in thinking the previous JV terms with BMG were ludicrously beneficial to CAP? The cash payments and free-carried capex spend were IMO far beyond any type of commercial terms that would be negotiated by a savy party in the marketplace. I cannot recall a deal anywhere out there where a small cap explorer is progressively paid large amounts of cash from a greenfields exploration program with committments to multi-hundreds of millions of free-carry capex spend, all from the intial JV signing stage.

It doesn't surprise me that CAP hasn't been able to secure a JV partner on anything near the terms under the BMG deal, as that simply wasn't realistic. I think todays deal is more realistic in the current marketplace - a small upfront (i.e. repayment of costs) and a committment to progressing to a certain point for the project. Both parties invariably will then negotiate the going forward status quo from that point, and if PM want more of the project, they'll negotiate that down the track.

I still think todays deal is a good outcome, more for the fact that it provides a committment to moving the project forward without the overhang of uncertainty than for the terms of the deal itself.