This is all as expected. No other party will show their hand yet, it may be months yet until they do. Also it was as I had hoped, Donaghue did not say that the BOD recommends the offer, he just said that it was compelling enough because of the funding hurdles in front of KDR to put to the shareholders, and he was right to do that. To brush WES aside would be to do what Lynas did and KDR wanted to be "in play". To keep WES on the line they had to offer them an exclusivity DD period and that is also fair and reasonable. What Donaghue did do in his presentation is to highlight KDR's recent achievements and opportunities right at the end of his presentation. His last two points are significant and worth repeating for those that did not see it:
"- We completed a regional soil sampling programme at Mt Holland which defined several large geochemical targets comparable in scale to Earl Grey. This exploration activity further supported our view of the prospectivity of the Forrestania greenstone belt and continued to underpin our belief that the Mt Holland Lithium Project will be a long-life, low cost project with potential for continued expansion. - We also announced a strategic review of our 100% owned gold and base metals rights to enable us to better focus on the Mt Holland Lithium Project."
In other words I believe this was code for: and so I (Donaghue and the BOD) think we could be worth much more than $1.90 but let's see what the market and shareholders think.
KDR Price at posting:
$1.92 Sentiment: Buy Disclosure: Held
