Looking at the documentation, one would imagine that a lot of the stalling in the weeks leading up to the board accepting the revised offer of $0.57 involved SDL making sure that all intrested parties MUST finish their DD with financing before the board recommended the HL offer (in the absnce if a higher proposal).
There's a lockout clause (clause 14) where there can be no further solicitation for bids, other than a TO from a third party. It follows that any TO from a third party will also need to come with an approved financing backing as well here, suitable to both HL, SDL, and most likely Cameroon & Congo governments.
From HL perspective, this SOA was the best way of shutting down SDL from progressing with other parties. But they could never make this SOA water tight to its finality.
I take great comfort that SDL is now in play once the mining permits are secured. I also take comfort in the fact that HL will match any subsequent offer with the same offer. Meaning they are willing to pay more if someone else ups the bid. Actually HL are conceding that this asset is worth more. But what we dont know is how much more they are willing to pay.
Lets hope GJ is owed some favours from some long standing IO pals and wants to call in those favours on this deal. Heaven forbid I am not saying a dummy bid, but rather a "now or never" bid from a mate.
I cant see GJ being so niaive to say "he will be looking forward to a happy christmas" without there being some basis to this rather ambiguous comment.
Ground floor opportunities dont come around often. Here is one now, and we have only 1 interested party? - like hell.
All we want is that Highly Confident Letter, and we are off..
HOLD.
HB
SDL Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
