It's taken them a long time to announce this... makes me think...

It's taken them a long time to announce this... makes me think they have been waiting to do it...

Perhaps the extract below has something to do with it:




There is no way that the company would spin the project out into a shell with no cash when right now we are in a very unique and strong position, being a producing gold miner who could potentially fund Goulamina 100% from cash flow down the track on our terms.

I think the company is looking to sell a partial stake in the project to a partner in exchange for funding, and expertise in lithium hydroxide production so that the project can be vertically integrated, and sell value added lithium products directly to Europe as a lowest quartile producer (lowest spodumene OPEX of peers + low cost environment in Africa + low shipping costs).

Think KDR when they brought SQM onboard.

Based on the timing of this announcement, and the company's comments re commercial activity, I think this could be closer than we think.

It is easy to see why the SP is on the increase:

1. The writing is on the wall that big news must be coming

2. The lithium is currently valued near 0, so has so much room to grow (~$600M market cap based on peers would be a good start)

3. Investors are getting a 2 for 1 at bargain basement prices. They get shares in FFX's cash cow producing gold mine, and then free shares in the world class Goulamina project in the new Lithium Co once spun out with funding and a clear path to production - what will the FFX share price be at that point??