First the positive: JV partner Sumitomo remains on board for the...

First the positive: JV partner Sumitomo remains on board for the time being. Drillings continue - Shadow and Hardway drilling will be combined. The drilling results are crap - if I may say so. So to call a trading halt in this context was unnecessary. Not a good decision from my point of view. The SP should have been left running.

Either way, we are seeing a recovery from this year's lows - and the SP was played around with again today - let's see how things continue over the next few days.

Then the obvious:The SP development of HMX and CNB since last spring was almost parallel. We have already discussed this. I've always said: This can't be a coincidence. Also no coincidence that the SP of HMX YTD has been hammered down like this - with little volume and for no reason.

So it's also pretty clear to me that talks have been going on for some time and someone knew about it. It could be an involved third party - e.g. on the side of CNB - who could be interested in CNB getting hold of the Mt. Hope tenements (and all the rest including Kalman!) on relatively favorable terms. I don't buy that these guys have just started talking about such possibilities. I'm sure someone had a hand in the HMX SP - several times in recent months and always to the disadvantage of HMX shareholders.

It is interesting that CNB is talking about a "corporate action", while HMX is talking about a potential merger. From my point of view, it looks as if CNB could also imagine buying only the tenements around Mt. Hope - that would then also speak in favor of maneuvering the HMX SP downwards in order to fundamentally weaken the other side's negotiating leverage.

The logical thing: Consolidation in the region would make a lot of sense (this has already been mentioned) and a merger of HMX and CNB could actually generate some synergies - for the benefit of both companies and all shareholders. The path to becoming a developer and ultimately a producer could be accelerated considerably. The combined exploration potential would be enormous. The new company could also attract government attention and some funds from the critical mineral initiative could flow.

Conclusion: In principle, a good development - if a "transaction" actually and finally takes place. Until then, the SP will certainly become a plaything. Let's see what the media say or write about it - that could move the SP up or down. The good thing is that if CNB produces good drilling results, the HMX SP should now rise with it. The market has seen the two companies as one for some time now.

Personally, I would have preferred to see exciting drilling results. The news today is therefore somehow a disappointment. At least for me. Even if the "fundamental" development is positive - from a "rational point of view". DYOR