Chinese player swoops in on embattled WA lithium miner, page-48

You're correct the GXY's obligation is only to the shareholders; however, that does not mean that it should better the CHEL deal. Acquiring A40 at any cost is not in the interest of GXY shareholders, quite the opposite actually. GXY bought the debt to protect the original investment as A40 approached insolvency (defaulting on the Tribeca debt). An opportunity to pick up A40 on the cheap was an additional benefit.

"There is no benefit at all to GXY to taking on the debt if they let someone else dictate the terms."

Around $1 million in interest and a 5% early repayment fee says otherwise.

"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)."

That investment ($42 million or thereabouts) was gone the second A40 went into VA. No point throwing good money after bad. GXY needs that $100 million to develop stage one of SDV, a tier one brine resource. GXY shareholders would be furious if these funds were diverted to acquire A40. The A40 stockpile is only worth that figure you have quoted if there was someone to sell it to, which unfortunately, there isn't. That's kinda the whole reason for this situation in the first place.

"Better to raise capital and have an existing mine and 15% ownership of Cowan."

Capital raise while we're near multi-year lows at the bottom of a down turn? With current net cash of $169 mill USD? No thanks.