Chinese player swoops in on embattled WA lithium miner, page-47

GXY’s obligation is only to their shareholders, so they should be looking at just bettering the CHEL deal. Surely that must be in their thinking. Why else would they even buy the debt if they didn’t want a greater slice of the company. There is no benefit at all to GXY to taking on the debt if they let someone else dictate the terms. They will still potentially lose their investment in A40 if they are sidelined.

So why potentially throw away tens of millions of dollars invested in A40 when they only need to probably offer $100m, less their secured debt and interest to get the lot, including a stockpile ready to ship worth around $25m at spot price (assuming it hasn’t since been sold).

Better to raise capital and have an existing mine and 15% ownership of Cowan. Good long term plan as the lithium market will eventually turn. Replacement cost of the A40 mine would be multiples of what CHEL or GXY will get it for.

I have no animosity towards GXY. They kept A40 afloat but imo MC and the board hopelessly mismanaged the business. Little wonder things went pear shaped and the relationship between the companies broke down.

The blame lays fairly at the feet of MC and the board, starting long before GXY got involved and continuing through to the end.

Just my opinion.