Ok. Lets have a closer look at exactly what this (very much price sensitive) announcement is telling us.
" February 2019 is the earliest that registration of the Salta tenement transfers can complete. The registration process is a formality but is the final condition to release the consideration of US$280 million (less withholding tax of approximately US$8 million). In the meantime the Company is earning interest on the funds "
"Galaxy’s existing strong financial position, with zero debt and solid cash flow from Mt Cattlin, allows for a comprehensive market testing and price discovery process, without the Project timeline being impacted"
So the "formality" (ie NO risk) of the mining court has delayed the money being received from Escrow. No biggie, we don't actually need it yet as we have ZERO debt and solid cash flows from Mt Cattlin that allow us to proceed, on schedule.
Meanwhile
we are receiving the interest on the money in escrow! Not Posco. At under 4% interest that would equate to over $1 million a month...
"Galaxy has received several offers from potential strategic partners which are currently being evaluated in detail. Negotiations continue to progress"
We have received
SEVERAL OFFERS … that's OFFERS! people. Not "several interested parties" anymore. But several companies willing to sign on the bottom line! Other Lithium's receive an offer and take it because they NEED the funding, and their share price jumps. We have SEVERAL!!! And no reason to accept ANY of them unless we deem them to...
"properly recognize the fundamental underlying value of Sal de Vida and the partner can add additional value to the Project either through technical and/or financial input"
So basically, it sounds like Anthony Tse is saying, nice and loud and clear, that he will not accept any offer that is justified by a comparison to our MANIPULATED MARKET CAP or BS LITHOUM OVERSUPPLY story.
Why?
Simple.
Because we don't have too. We have the funds to continue the project alone, so feel free to wait with us (GXY) until all the LIES and BS blows over and then see how much you will have to pay...
or go ahead and make the offer for the entire company...
or go find another Lithium company looking for a partner that is offering:
- "superior quality of Sal de Vida as a long life, low-cost operation with excellent economics"
- "Reserves... supporting an initial 40-year project life... and substantial upside" (Funny to add that in... "substantial upside"...
)
-
"Favorable brine chemistry – highest lithium concentration of Argentine development assets (732mg/L Li) and low impurity levels "
- "High economic returns forecast through feasibility studies, with operating costs forecast to be within the lowest quartile "
So good luck with finding another with that before the BS runs out of puff.
"so the Board has resolved to formally extend the process timeline to ensure proper consideration is given to the strategic merits and proposed terms and structure of each of the offers."
Give-em a bit more time to get their act together. Maximise the bids. Show them WE are the ones in the drivers position. - Negotiation 101. Anthony, you've got this.
Meanwhile...
We also get ourselves a comprehensive little update on what is next at Sal De Vida.
"The Company continues to focus on advancing Sal de Vida in the short term"
"Michael Nelson, an executive mining professional with 30 years of project execution and leadership experience, has been appointed as the Project Director for Sal de Vida, effective January 2019"
"The Sal de Vida Project team has been further bolstered with the appointment of several specialists in the fields of process engineering, permitting and government and stakeholder relations. "
" an independent process advisory committee has been established to oversee the current test work program."
"FEED will be primarily focused on completing outstanding value engineering studies to identify key areas of potential capital savings and optimization, as well as advancing Project engineering to the detail required to prepare and commission bid packages for detailed engineering."
So what's next?
"Value engineering studies were initiated throughout Q4 of 2018. A detailed geotechnical work study is currently underway with expected delivery in early 2019"
"construction of a demonstration evaporation pond facility has commenced with major earthworks approximately 40% complete."
AND
MOST
EXCITINGLY
IMPORTANT
PIECE
OF
INFORMATION
GOLD!!!
"Concurrently, Galaxy is also undertaking a second test work program to act as a platform for piloting various alternative, non-conventional processing technologies to assess their viability for implementation for the Project. "
Now what "non-conventional processing technology could that be I wonder?...
Play your negotiating games Anthony Tse! See you on the other side!
No doubt there will be a lot of BS spewed from the Downrampers and Shorts. Trying desperately to focus on anything they can, but look at this announcement for what it is. Nothing has been taken away, we are being offered money and partnership by multiple companies. The cash is ours (gaining us interest!) and as it is being used for SDV anyway, would be doing the same thing in our bank as it is in HSBC escrow.
Happy New Year to the Longs!
