"The next stage of development for this project is to take it from Scoping Study stage through Feasibility and into production. Obviously this requires a fair bit of funding moving forward.
With this in mind, about 8 months ago we started a formal process to identify and talk to potential strategic partners who might want to come and participate in the project. Those discussions have been going very very well. We were initially approached and we've also approached some international major players in the battery minerals space. And over the course of the last 6 months through this process, we've got down to a shortlist of companies.
So far we've received a number of indicative non binding proposals which we are currently evaluating and we are looking forward to, in a fairly short space of time, advance those discussions and potentially get to the point of receiving one or more binding proposals that we'll consider. These are proposals to ideally come and participate, invest in the project and work with us to advance it but we've also incidentally received some offers to buy the project outright. So we are considering those as well."
So a question for SRK holders -- would you want LEL to
-- sell Solaroz (and distribute the funds) / sell LEL into a takeover, noting that even if they got half the multiple of the recent Tecpetrol-->Alpha Lithium takeover (~$AUD32/t LCE) that would equate to ($32 * 3.3Mt * 90%) ~95m or nearly $1/share or $30m all up for SRK which would clear the $10m debt and leave $20m leftover to develop Paulsens, or -- keep on this current path of selling Paulsens?
If the former, you'd want to be contacting management (who are also LEL's management) to get any divestment deal done before this meeting takes place on 6 March....
SRK Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
