REC JV
posted on
Mar 17, 2014 08:20PM
Probe just paid approximately $600,000 up front to REC in cash and shares, plus they took on a minimum of 5 years maintenance costs, plus 100% of the expenditures to do a bankable feasibility study if we want to go to 75% ownership. There may be the possibility that the HGZ swings south but so far it been pretty linear on a SW trend. My read of the geophysics and HGZ projection is that the HGZ projection misses the REC property by a long shoot so that doesn't seem to be the motivation. That leaves the very real possibility that PRB sees another regional target on the REC property based on their reinterpretation of the geology. Interesting to see if they drill right away. If they do it doesn't sound like a company being bundled up for sell any time soon.
.... Been There