Mate, it doesn’t make sense to suggest that strategic partners would be concerned about WR1 holding non-core assets. If a strategic is focused on long-term lithium supply security, they’re not going to be pushing for WR1 to divest from potentially valuable spodumene tenements. To me, this decision has nothing to do with attracting a partner; it’s a direct result of WR1’s current financial pressures.
We’re in a tough spot. Cash reserves are low, quarterly burn is relatively high, there’s still a few million left to be spent from the FTF funds, and we’re staring down a C$2 million break fee if we walk away from Renard, which is starting to look more and more likely. All up, the short-term financial outlook is pretty grim. Without a partner stepping in soon, we’re in real trouble.
That’s why management is now considering selling off what were previously considered core assets. This wouldn’t be happening if they were confident in WR1’s financial position. Not long ago, Sirmac-Clapier was seen as a high-potential project, and now it’s potentially on the chopping block. This is about buying time, plain and simple.
I think there’s a serious misreading of our leverage in these negotiations. Adina isn’t a unicorn. There are several other high-quality spodumene projects in Canada alone—Shaakichiuwaanaan, Galaxy, Moblan, Cisco, Galinée—all seeking the same investment dollars. Just like CE is speaking to multiple potential partners, those same partners are reviewing multiple projects.
Bottom line: the ones with the money hold all the power. And we’re nearly out of both.
WR1 Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
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