The point is that they are negotiating a long term strategic partnership and a) ensuring they are the preferred partner and don't get gazumped and b) ensuring the Puna project stays on track for a small stump up of cash. I see it as a bridging loan that supports mutual interests, a pittance for ATL that saves AGY/Puna a less favourable CR with pure venture capitalists, plus a show of good faith that will keep ATL first in line in negotiations. There is no binding commitment on either party, it is not a loan, just a few mil to keep the project on track as long as is needed to secure an offtake, if a suitable arrangement can be reached. No hard feelings if not and ATL will be able to get its money back in a year's time. Suggests very strongly that a deal will be reached soon enough.
AGY Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
