I was surprised that IGO didn't push to have the whole package included in the JV, and I would suggest that the C&M costs and potential rehabilitation liability meant it was too risky for them at this stage. The below statement makes me believe that there has been and continues to be talks around a JV for Nifty.
I think the study and the drilling that goes with it is required to embed appropriate value in Nifty, it will de-risk it for any buyers, and potentially on completion of the study and hopefully with some positive exploration results from their program, IGO will be enticed into a JV for a Nifty restart. At the moment we got something positive but are still carrying a lot of the risk.
I personally would be happy to support a cap raise for further drilling and a more detailed study on Nifty, but seriously hope that would be sufficient to entice a partner for the actual restart CAPEX.
MLX Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
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