It doesn't mean all is lost, it means that if they go bust, all...

It doesn't mean all is lost, it means that if they go bust, all the work and money that BCL have spent on exploration and evaluation will revert back to BML's hands.
If i was PV i would be selling the idea to others for a JV or similar arrangement ASAP. The worrying thing is that BML have very little money in the bank now. Or they could try and flog of what they have, raising a few mill perhaps, and use it for exploration somewhere else. He owns a significant portion of the company so it would be in his best interests to save the company some how. Anyhow no point panicking, i have seen other companies in the past dig themselves out of bigger holes.