Originally posted by Ubique13
Huge news, doesn't get much bigger than MinMetals. Mark has been a busy boy over there in China.
Foolish shareholders of that lithium stock that must not be named (unless we want to feel the wrath of 100 upset children throwing their toys out of the cot) are upset that MinMetals are making moves on BGS despite their serial pumper stating many times on the bird that they work with and have a "very strong relationship with MinMetals", "MinMetals is top 3 most likely player to JV to build mine and carbonate processing plant onsite" etc.
Do they really think that the decision to proceed with BGS didn't come from MinMetals head office and that any of the several other divisions within MinMetals won't be involved?
Yes Changsha is a research division, that is openly stated in the title of the announcement.
They conduct the initial evaluation work on projects, and once they are satisfied, they then provide the other groups within MinMetals with their work, who then lock up off-take, provide finance, conduct engineering & construction etc.
Previously, Changsha was an external group who did this work for MinMetals as a contractor, they have recently been absorbed into the wider group.
Once Changsha are happy, we will have top Chinese technical experts validating and advocating the project - "boom"?
Hi Ub13 and all Birimians,
I've been thinking about this LOI with Minmetals, and what sort of deal our board can get from this.
If Minmetals can finance, build, mine, transport and purchase our lithium, what is there left for us to do? And how much of the pie will Minmetals want? I'm thinking they will simply want to buy the Goulamina Deposit from us. But this is hard to do, not knowing how much lithium we really have.
If Minmetals was going to take over this project, the best for BGS would be to get a Percentage of the final product, with a choice to sell to whom they like. And once Goulamina has been properly defined they can make an offer for our share.
Would be interested in what you think would be a fair deal/percentage for BGS.
(20min delay)