I am first to admit I can see this announcement can be seen as negative... Any delay, especially in funding, is never great. However, there is a difference. If this was all TON was relying on, and after the DD of NH, Shenzhen opted for a 6 month extension based just on NH, I'd be VERY nervous. But that isn't the case at all.
"SQZG considers the Ancuabe graphite project could also hold additional significant strategic value and wishes to include the Ancuabe project in the scope of their due diligence program. A positive outcome from this expanded due diligence process may allow Triton to access additional capital from SQZG to develop the Ancuabe graphite project."
"...all other terms of the LOI remain unchanged."
"...The extension of the due diligence period will allow Triton sufficient time to obtain initial drilling, additional assay and metallurgical results from the Ancuabe graphite project."
"SQZG has acknowledged the continued encouraging results being generated by Triton..."
"...also highlighted the potential strategic significance of Triton’s graphite for China and elsewhere, and further justifies the rapid development of Triton’s Mozambique graphite projects to meet the growing global demand for high quality graphite products."
When I read the above, it makes be realise this is only going to make TON bigger. BB and management aren't stupid. They know what is happening behind the scenes. They have said time and time again that they have a very positive relationship with Shenzhen. At the same time, Shenzhen realise that why stop with Nicanda Hill? Let's take the whole pie... Not just settle for a slice. They need this 6 months, because IMO, if all goes as planned, there will be a serious deal in the works.
As stated, yes I agree that it will naturally hurt the SP... Investors don't like delays, and they don't like uncertainty. But IMO, this deal will go ahead, based on the above extracts from the announcement...The product is there, no denying that. Just need to cross more t's and dot more i's now.
I will use this short term reaction to top up my holdings and average down my purchase price, because I have no doubt that this will be even bigger for TON moving forward.
To reiterate again, I am not intentionally down-playing this 6 month delay and trying to talk it up, because I know the SP will be affected short term. I would have also preferred the initial LOI to be finalised with initial funding, but I also know, TON's future has actually just got more exciting!!
IMO, good luck to all.
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