Thanks DGH, but it seems it may have been misunderstood.
Rabbit, I think this paragraph in the article you posted absolutely explains the key takeout:
"Clearly, this is a major step forward for Legacy and allowing an accelerated development of Mt Bevan, as this deal now provides Legacy with effective control of the project."
For me the word "control" speaks volumes as it implies that the Mt Bevan project can now move faster under the majority direction of LCY. As I understand it funding is now required from both JV partners on a 60/40 split. I'm pretty happy that LCY partnered with NMDC because our 60% share is well and truly covered and from LCY's perspective they would want to move the drilling forward at an accelerated pace.
Our JV partner on the other hand does not seem to have the same avenues to pay for drilling costs and would be looking at ways to do that. In my opinion this is why there was a term sheet drawn up so LCY could help HAW fund their share. Although the last term sheet was withdrawn the funding need appears even more apparent for HAW and I suspect the JV partners might re-look at terms. As an LCY shareholder I have no problem helping out our junior holder in the Mt Bevan Project.
In my opinion the same art of negotiation we see between the cash strapped countries and the cash backed countries in world politics is also playing out here on a local level hence the earlier analogy, but happy to have had the opportunity to elaborate with more detail.
LCY Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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