This is an interesting deal. They get some cash flow if all turns out OK (has the team to skills to predict this - anybody know?) and just as importantly they get a whole bunch of real costs they can use in a study to get the bigger development going.
There will also be the alternative to merge and just ramp the production up and up. They are bound together already. This to me is the real deal option.
I'm in for upside.
Ann: AGD: AGD Signs Agreement to Process Hualilan's Material, page-7
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