Let me clarify.
CXO don't need the Bynoe project from CHR.
BUT CHR most definitely need CXO to get any value whatsoever from the Bynoe project.
Will CHR throw away another $500K to own 100% of a project that is totally worthless without CXO involvement and infrastructure?. Perhaps they will.
Regarding SP of both companies, anything is possible for either company. The point is, CHR are currently trading at a 30%+ premium to what they were prior to the CXO interest in them. Most other mining companies in this space are at their 1 or 2 year lows right now, and I doubt CHR would be above 6 cents if the CXO deal is not pursued. If CHR pay the $500K in the next 60 days, when will they need to raise more cash??.
Anyway, to be honest, it's such a small deal for CXO I couldn't really care less. It probably benefits CHR more than CXO to go ahead with it in some shape or form.
$500K for 30% of Bynoe also implies a total value of around $1.5M for the Bynoe project. So the CXO offer was indeed valuing all the other assets CHR has as well, and paying a 30-40% premium above what the market valued CHR at the time.
I see CHR is now on the Niobium train, since Lithium is not the flavour of the day. Trying to find the next pump to enrich the CHR board and insiders.
