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128 Posts.
125
16/06/21
12:21
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I think Baron has a point actually and it's not how I anticipated it would be:
My initial understanding was:
- Firefinch (or 100% owned subsidiary) own the resource
- Ganfeng pay $130m for half
- MLB (new JV vehicle) then would get an even injection from both Firefinch and Ganfeng to $xx with the rest covered by a debt arrangement.
- Effectively we own $130m cash plus half of a $260m plot.
How the document reads and I think Baron is suggesting:
- Firefinch currently own MLB
- Ganfeng invest $130m into MLB to own half of it
- that amount will cover both parties development portions with the rest to be covered by debt facility
- Effectively we have $65m cash (committed in MLB aready) plus half of a $260m plot
So really (if I'm right here) it is less good for Firefinch than myself and I assume some others would have hoped.
All things considered, still happy to own half of what is now effectively a fully funded giant lithium resource with no outlay required.
Happy to be corrected hahaha... please...
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