I interpret the SQM deal as SQM/WES jv need more lithium supply and this is opportunity for them to get into ground floor cheaply. $20m not a lot for them and they did pick up 20% ownership (probably control) really cheap.
If the initial drill holes find a decent ore body then all well and good if not then they have access to Ni to sell to an offtaker.
full disclosure. I bought in for 25c and sold 50% last year around 50c. So i have a free carry. Investing is all about timing and specs is always about management and blue sky potential. If you loose faith you can sell or put in bottom draw. AZS is in a half way house atm so this deal gives more blue sky. Time will tell if its been worth our while waiting.
AZS Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
