In the event that Sentry pulls out of the conditional deal, there may be two reasons: (a) it has further probed into MHL and finds that really, the tenements aren't worth investing in; (b) they had trouble finding investors to help them fund the deal.
If (a) is true, then yes, MHL is in deep shit -- very real possibility it will go bankrupt and we can all say goodbye to our holdings. If (b) is true, then it means that the tenements still have potential, but it's just that Sentry doesn't have the funding, this means Jon et al will then be able to find other potential suitors for a farm-in -- if the market believes this is the case, I predict an SP of between 1c to 2c.
You are correct in your second point about Sentry using its position as leverage to get a better deal. In my opinion, we have already seen this happen, and in part the delay in the JV, and also the relatively low 15% portion for MHL, is due to this. However, now that we have the 90 day deadlines, it is no longer the case as the longest that they may "delay" the signing now is 90 days.
Does that answer a few of your concerns, perhaps?
MHL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
