Hi Pro, from memory ( and I could be wrong as often the case ) the deal struck with Gangfen and MIN at Mount Marion was done when NMT share price around 2cts with no cash.
Both Gangfen and MIN had rights to buy into Mount Marion to increase their stake which they subsequently did until NMT had sold it all.
I’m not sure if NMT could prevent this phased purchase by either party as that was the terms of deal struck at the time, perhaps as NMT asset rich cash poor at the time the deal was negotiated.
NMT then had the rights to buy spudumen provided they could enhance its value ( approx 56k tonnes per year ) NMT used the proposed deal in India which was to create a new plant to take the 6% spodumene to firm battery grade lithium. Gangfen then paid NMT $30m to give up these rights to buy, so in all it was a very good deal.
Like you I know it would have been better to hold part of Mount Marion to get long term income but I don’t think NMT had the right to do that under the contract they struck with Gangfen and MIN to incentivise both to enter the into agreement and fund the processing plant. You’d need to check back all past Ann’s which I can’t be bothered doing but my recollection is both had rights to increase there holding and both exercised these rights until NMT had sold it all.
Stand corrected if that’s not the case and you could argue NMT should never have allowed both to buy so much we had none left but then perhaps the deal would never have been agreed had that been the terms.
If I am correct then it’s unfair to constantly lambast NMT for selling out MM, I agree holding 10% or 20% would have been much better just not sure they had the ability to do that, Loop
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