Compelling opportunity, page-2394

Ganfeng is going to come for us , I am expecting an offer before year end but likely after they get acceptance of the ml deal from shareholders . I don’t think they will get a positive vote initially from shareholders there but , although under Canadian securities law the takeover process I think allows other bids to be now lodged but ganfeng will have right to counter offer . Price I am hoping will end up higher . Ganfeng have got the asset cheaply in my view even though it’s low concentration by Argentinian standards and higher impurities then we have as resource size is larger then us and they are only one on this salar I understand and they are further advanced being at pilot plant stage . If you are a believer in dle tech , price is very cheap .

The other issue at play is country risk and it is real although I would expect a higher export tax ( current export tax is 8% I think) , not nationalisation , that will most certainly happen in coming years . Ganfeng are clearly best placed to absorb these risks and given their size they will be able to negotiate with some power with Argentinian government .

This really gets down to desire to see it through as well. Having spent a bit of time researching mls board , they are predominantly burger flippers , they were never going to take this all the way especially when you add in country risk , battery grade risk and financing risk , the last being a function of the first two . They have been dragging the chain for some months announcing how they would finance their project beyond the pilot plant stage . Clearly they had been in negotiations with ganfeng for some time hence their delays proceeding to funding .

With our much higher concentration and purity level , definitely supports a view that price should be around 1.50 per share . To me also probably indicates something like lake at around 400 mc is fully priced at this moment in the development cycle .