I may be completely wrong but it sounds to me like they're going to spin off a separate company that will have exclusive rights to develop UCG projects in China. Kam Lung will pocket 70% and CNX will get 30% of the profits. CNX will supply the technology but not the capital. If that is the case then some may think we are selling out a bit, but it maybe the only way forward. Happy to be corrected.
I think the best part of the deal for us is to have a Chinese contact in China. In some cultures, particularly Asian ones, that is like gold.
GLB
CNX Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
