Heads of Agreement: Typically a non-binding document that outlines basic terms for a partnership/agreement/transaction. It underpins evidence to third-parties (eg investors) that both parties are committed to finalising a formal agreement.
Note in today's ANN, under "About Mitsubishi Corporation RtM Japan Ltd: ".... It is also involved in new project development aimed at ensuring a stable supply of raw materials into the future..."
Mitsubishi have just declared to the market place that they are serious about doing a deal with AGY - and that they are interested in not only purchasing lithium, but in developing projects to ensure stable supply.
IMO, the next link in the contract negotiation chain is the DA. Once this is secured, it ensures the project can proceed, and will enable finalising the formal agreement.
Again, IMO, the agreement will either: - include a pre-payment for the OT, or - the agreement will enable AGY to secure finance (these were the 1st and 2nd targeted options that JZ discussed at the AGM in May)
Today's ANN is an indicator that a CR is unlikely.
AGY Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
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