LRS General Discussion, page-19136

Last Friday I emailed LRS about the DFS and then followed up in a phone call. I also spoke with the CFO.

• In the response to my online query about the expected release date for a DFS, CFO referred me to the Scheme Announcement (cut and paste from his email below)
• Email response from LRS re DFS:

We will provide further updates to the market on DFS timing.Before then, the most up-to-date information is contained in the scheme announcement from 15 August 2024.
Key sections as follows:

Latin Resources has been progressing a DFS for Salinas which had been anticipated to be completed by the end of the September Quarter 2024 based on a standalone development of Salinas. Under the SIA, Latin Resources and Pilbara Minerals have agreed to form an integration committee which provides (amongst other things) a forum for Pilbara Minerals to share its project development, mining and processing expertise to assist in optimising the DFS and the potential of Salinas to unlock value for both Latin Resources and Pilbara Minerals shareholders on the assumption that the Scheme is implemented.

Upon implementation of the Scheme, Pilbara Minerals will continue to progress and optimise the DFS towards completion, building on the work undertaken by the two companies between now and then. Based on due diligence completed, Pilbara Minerals plans to further optimise the mine plan, project flowsheet and design incorporating the learnings from Pilgangoora and other producers in the region using a combination of Pilbara Minerals’ projects engineering team and the in-country Latin Resources study team. Timing of the optimised DFS will be advised to shareholders as soon as practicable.

Once the DFS is completed and ongoing Stage 1 fast-tracked permitting is finalised, Pilbara Minerals has the optionality to consider a final investment decision (FID). Pilbara Minerals will consider any project development and FID timing against the prevailing lithium market conditions and customer requirements, consistent with previous Pilbara Minerals production expansions.
Please let me know if you have any questions.

• I then emailed back expressing concern that DFS might be deliberately withheld to better suit the proposed arrangement for PLS, to the detriment of shareholders. I asked him if I could have a committment that this would not occur.
• He emailed back and advised that the company cannot make that committment, adding that the agreement reached included a requirement that the approach with DFS would be different to what was previously announced.
• On his invitation, I called, and he essentially confirmed the above. In conversation I said that I thought DFS is in the best interests of Shareholders to 1. enable / attract better offers 2. to better inform the 'independent assessment' of the scheme arrangement. He disagreed on both counts and held fast to his repeated line that the deal is a very good outcome for shareholders. We disagreed but the conversation was civil.

I'm totally gutted by this outcome - hadn't been on HC again until today. To his credit he was pretty open and transparent and ready to discuss. I'd encourage anyone else with some better arguments to call and voice your concerns / opinions or find out more.