Ann: MoU With China Sciences Hengda Graphite Grou, page-4

re: Ann: MoU With China Sciences Hengda Graph...
Todays Announcement was very good. Why?
1. We see from other Graphite vendors these MOUs being signed but usually with traders. This is the first one I have seen where
a) the partner is specifically named
b) and includes a collaboration in a number of areas (not just a potential off-take partner).
c) already states that market based pricing is the basis of the agreement.

Other things I like about this are:
1) It is an established miner/processor/supplier.
2) With rationalisation needs more feedstock and is goign to invest in actually establishing if McIntosh can provide that feedstock.
3) Focuses on high end flake product for batteries etc which would infer that they see McIntosh as the right flake for those high end products.
4) Is non-exclusive and LMB are still out looking for other deals.

If this all works out, I wonder what Hengda will actually do? They are a long term miner so you would think they could calculate the value of the underlying assets LMB have. They want to secure supply given the China internal curbs that are being put on Graphite mining. I could see a couple of not unbold moves they could make.

Please note: These opinions and thoughts (other then the info I rip from the announcements) are my own and not meant in anyway as investment advice. Do you own research.