No doubt Lithium Asset has deprived current shareholders of at least 150mil in extra MC. The logical process would have been to spin off the Manna Asset together with rights to Lithium within the Breaker Tennament. To get to the IPO stage would have cost them millions and time. In order to get a good IPO price they needed to do more drilling at Manna. At the time the board made the risk free decision to monetize Manna and not to lose focus on progressing the Gold asset. I still believe it was the right the decision at the time, given the problems in the mining industry procuring workforce, delays in drilling anaiysis results etc.
I can accept the decision that was made but I can't come to terms as to why they needed to sell the remaing shares in GL1. They didn't need the money, they are potentially getting another 10million once GL1 have acheived a JORC Mineral Resource of at least 250,000 tonnes of contained Lithium. So I can only presume the decision to sell was because they didn't think GL1 and Manna could achieve that target within the next six to 12 months. In any event Min Res was always going to be a buyer of the shares in GL1, so I can't see why the urgency to dispose of the shares.
BRB Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
