Totally agree with what both
@Maltisani and
@NxM have stated. Great Posts ....., and fantastic additional analysis by
@NxM. Always great to hear from the Mining and Process Engineer's.....
Not sure if Investors here are aware of the overall sensitive nature of these Bankruptcy Proceedings for NAL , and probably most of you here will not want to hear what I'm about to add. However it is important not to have our heads firmly implanted in the sand ( Beach Analogy - Sorry ...
) .
Before I do though - I want to make it clear that whatever happens in regards to the acquisition or merger with NAL , I'm pretty sure we will have achieved Management's ultimate strategy which had been mentioned in various Company Announcements as far back as 2017 as well as before the first run in the SP. And that was to perhaps process our Spodumene at one of the TWO concentrator's located in either of La Corne NAL ) and / or the Concentrator at the Nemaska Whabouchi mine for it's planned Electrochemical plant in Shawinigan...... also operated by Nemaska Lithium.
However we all know that the Whabouchi Option would have been logistically not an option due to it's 655.5 odd klm's distance from the Authier deposit. So that leaves the only logistical option beung that of NAL
So on the upside of things we've declared our hand and extended the olive branch to the Quebec Government in showing it the ONLY real path forward for this project is through Authier / Tansim / SYA et al . IMO , that should still result in an outstanding opportunity for SYA.
But lets get back to the real issues at hand with respect to the sensitive or volatile aspects of the current Administration of NAL. So as I stated in my opening comment , I'm not sure if people realize , but the reality of the NAL creditor's administration is a direct result of a nominal $10.5 million dispute with G.G Entrepreneur Minier Inc of ( G.G ) . A sole Creditor who initially engaged with NAL in a contractual dispute over certain amounts which then came to an impasse which then resulted in the process being elevated to a stage of Interim Receivership. At this point , many of the alleged claims by GG were refuted by NAL and consequently , the Interim Receivership Motion was withdrawn. However, in order to resolve the commercial dispute , GG commenced the Bankruptcy Proceedings , which of course the Motion for Bankruptcy was upheld and currently pending against NAL.
So what we are ultimately talking about here folk's is that of the $32.295 million in Creditor Accounts Payable , it is ONLY the $10.5 million in dispute with GG which has resulted in this process. And obviously not a BIG amount to overcome considering the recent rise and rise of the Lithium Sector overall......
Of course there is also the $23.6 million ' Unconditional ' immediate payment amount required by MERN for the ' Rehabilitation and Restoration ' Bond which also may have brought NAL temporarily unstuck. However , and again this amount would certainly not be insurmountable to overcome IMO when considering we are also talking of this amount being associated with the Quebec Government itself. And so with the additional amount of $80.479 million in current and long term debt also being held with the Quebec Government ; it is easy to see that they would want a quicker and less drawn out resolution to the problems with NAL. And I'm sure they are also aware of the turnaround in Market Sentiments in the Lithium Sector .....as would CATL as well.
What hasn't changed in the whole strategy moving forward is SYA's unique , Logistic , total potential Tonnages ,and of course Quality of its deposits. These attributes together with it's obvious combined strengths in Engineering and Processing expertise from the Team it has allegedly assembled will continue to set it apart as a viable solution to the ongoing problems of the NAL project. However it just might take awhile longer that all.
So we should all be aware that this deal may in fact not go forwards as a ' Straight ' up acquisition of a Company with distressed assets and may be more of a JV or merged entity as has been suggested. Either way will be GREAT for SYA and it's shareholders.
Interesting that we haven't heard much from the only other Customer of NAL being the Hong Kong based Transamine Holdings and Investments Limited - Not to worry to much about that though folk's as there is an absolute ' Realm ' willing Buyer's steadily amassing behind our sister company AJM......
(20min delay)