Ann: Response to Pilbara Minerals Announcement,PLS-MIN.AX, page-86

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Awoonga

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21/09/16

17:59

Post #: 19323686
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Originally posted by ozblue ↑

I don't know if this has been mentioned by anyone but I cannot keep up with this thread because of the number of comments.

The biggest mistake made was doing a BOA with someone that did not include upfront payments. We need those upfront payments to finance the building of the mine. Clearly we should be talking with MIN and working out a deal that is profitable to both companies and get rid of the silks. However WE, PLS made the mistake of doing a first deal without upfront payments. When it was withdrawn, the new deal should clearly have included upfront payments, instead of buying shares.

The same deal offered to MIN, we have plenty of upfront cash, and plant can be built at 4Mt/a if necessary.

MIN seem to want to buy the concentrate, but have a legal document that states they get the chance to meet any offer from another company wanting to buy it. So of course we should be selling to them, but have our first contract with a cash up front payment!!
SuperNinja brought up this point months ago and he is correct!!

I tried to ring the company and KB is overseas, the receptionist reluctant to tell me where OR when he would be back. Everyone else is busy and I'm waiting for a returned phone call from A. Boys.

I find it incredible that the MD would disappear overseas the day after release of the DFS. This is poorly timed as him being here to promote it would be valuable. Hopefully he is doing exactly that where-ever he is.

The MIN issue could have been solved months ago by just doing a deal with them. A wise and rich person once told me that with good people you don't need a contract, with bad people a contract doesn't help much.

We and MIN should be working together to get the best deal for both. Has anyone at PLS just picked up the phone and found out what MIN want in terms of spodumene and/or concentrate?? I'm trying to find the answer to that right now!!

From the MIN announcement it looks like WE have not acted in good faith, but that is only one side of the story.
What IMO we should do is withdraw the deal with GLC again as it appears it is not legal again. Then pick up the phone and do the FIRST DEAL with MIN that includes up front payments, but might give them a good price compared to market of a 2.5% discount, which would really equal what we would get elsewhere.

If no deal, then make our first BOA a simple one with upfront payments AND LET MIN MATCH AND HAVE IT.
Why are we playing games with them instead of just getting a deal done is beyond me, and the sensible thing to do is make our first BOA a simple one that they could match for as much as they (MIN) like. Then after doing that, start working on the complicated deals.
Working on a complicated deal first up was just wrong, and is us playing games. If we had given MIN nothing to go to court over, then we would have deals and cash in the bank by now!!!!

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ozblue,

All this talk about upfront payments has little to do with the current situation.

The complication is due to "matching" the offer which includes all types of benefits/obligations for both PLS and GLC.

For example, an ROFR to match a price of a house for sale is infinitely simpler.

Before MIN bought out GAM it was a simple deal between PLS and GAM for the Tantalum not the Lithium.

Let's not lose sight of this and put any blame on PLS. It was unfortunate that GAM sold out.

IMO, MIN are the ones making it difficult and PLS have done a very good job dealing with it so far.

PLS Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
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Ann: Response to Pilbara Minerals Announcement,PLS-MIN.AX, page-86

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