If you vote yes, you're betting on Tiger raising capital and you are accepting LCL giving the asset away for AUD $1m. Yes, understand if they don't pay the remaining tranche in 8 months the asset in theory could be returned back to LCL. But what you're also forgetting is this management is misaligned with shareholders - they are aligned with Tiger. If Tiger does not raise, management will give them more time, because they are aligned to do just that. What does this mean for shareholders? No progress, lost cash, and opportunities. It also means LCL will need to raise more cash and all investors will then face more dilution.
Tiger is going to have a hard raise ... Investors hate seeing their money go to pay back a company - they want it in the ground. Not to mention, Tiger will never advance this project they have no in country or operational experience. There's a topic I hope comes up on the webinar that has killed many companies in Colombia (from Anglo, IAMGOLD, all of them) ... its the socialization issues, and one that will never allow LCL to advance in country.... it doesn't matter if they have the best drill programs etc and create 10m ounces (like Anglo Gold Ashanti's) La Colosa project.... if you don't have the "Consulta Previa" you can never go into production. LCL never had it nor the 3 companies before it .... I can tell you right now, Tiger will never get it. Visby has done it before and has the money. Vote NO on Tiger!
LCL Price at posting:
0.7¢ Sentiment: None Disclosure: Held
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