From the announcement "Importantly, Kalamazoo will not be...

From the announcement "Importantly, Kalamazoo will not be required to take on the longer-term development and
financing risks inherent in a large new mining project in the current economic environment".
KZR has had its back against the wall in regard to funding for some time and this deal with DEG will keep it alive. KZR has shrunk to mini size at $17M market cap. Spinning out Kali only reduced its commitment to funding the Li exploration since they retain a percentage of Kali and the balance of their share was given to existing shareholders. However, this deal gives them real cash without substantial dilution.

The Victorian tenements that were hyped up originally appear to something of a mirage, although the need to work around the seasonal activity of Victorian farmers slows down all the explorers in this region.

Losing the most promising of their current assets is a negative, but hopefully it increases the possibility of success elsewhere. The announcement refers to the other holdings in the Pilbara region which are even closer to DEG's interests. KZR are now claiming that their strategy is to explore and sell off promising tenements. Perhaps they can work with DEG on these other locations as well?
If you have not done so already, refer to the DEG thread dealing with this deal. There are some good comments there about it.