That is putting a face value of US $220 mil = about AUD $290 million on the whole Mt Holland lithium project.
While I can see this news will advance KDR sp to about $0.90-$1.00 in the next few days, I feel a bit disappointed with the figure. I feel the biggest winner out of this deal is SQM, not KDR. There is so much potential of lithium at this Mt Holland and we have not fully investigated yet. In my post " Mt Holland lithium review" I stated that I believed Mt Holland could contain 500mil-600mil tons of lithium and I still strong believe it.
Having said that, I understand that with this injection of capital, KDR will be able to advance on many fronts including off-take agreements, engineering works, mining plans, further drillings at other areas including POW, TEXAS, BOUNTY, AND north and east of EARL GREY and thus will bring sp to $1.20-$1.30 range before Christmas.
So, for me it is a good news but not the best news. Can someone enlighten me a bit with your thought please.
KDR Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
