This deal was a no-brainer. ESS does not have the funds to do anything meaningful with the Blair mine and continue to advance the lithium and gold projects which it seems to consider to be better prospects. The last cap raise indicates that if ESS were to try to raise sufficient capital to advance Blair to a decision to mine status it would result in greater dilution than the dilution in the current Blair deal, but it would be to all the assets of ESS, not just the Blair assets. This was an excellent business decision, notwithstanding that the counter party also got an excellent deal. Sometimes you have to give away more than you would like to to advance your own position. Being a "dog in the manger" is not a good business strategy.
ESS Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
