https://www.australianvanadium.com.au/wp-content/uploads/2019/06/Westgold-MOU-final.pdf
To back up your point regarding the AVL water supply. AVL was targeting a binding offtake with Westgold after 6 months and to my knowledge still no binding offtake.
The more and more I think about the merger AVL need TMT total mining strategy because AVL have not met any of the key requirement for progressing their mining strategy.
- EPA stage 2 (could be up 4 years away)
- No water supply means no EPA approval
- V205 Opex of $6.90 ( TMT indicated to be under $5 per pound)
- No Con-product offtake
- I am highly doubting that AVL could meet all the conditions attached to their grant in a timely fashion also.
In summary the merger by AVL seems more like a hail Mary to survive rather than a fair merger. Credit for trying to acquire TMT on the cheap.
Regarding the funding TMT are not in the same funding cycle window when it comes down to it……TMT would require funding in the next 12 months and then AVL could apply in the next cycle 2-3 years away pending their EPA approval.
Why the TMT board approved the merger still is still beyond me
TMT shareholders understand the value of the TMT ore bodies and the advantages economics wise over AVL’s.
From my point of View RCF is in the worst position their AVL holding is worth nothing and they require TMT to make both their holdings worth something.
That’s where the 1 + 1 = 3 equation lies in my opinion.
TMT shareholders understand that TMT + AVL = 3 and 1 + 0 = 1.
