So there we have it ... a clear and comprehensive update by our company. Thank you Kinga & Andrew.
As expected, further explicit clarification on terms, pricing and conditionality of the earlier ann. namely that both parties will expeditiously work to conclude an SPA by end October with the only condition precedent (LNG.AX) being FC which may be extended beyond YE if FC is not achieved by that date (by mutual consent).
Their second ann. shows clear justification for not revealing ongoing (since Apr) and incomplete commercial discussions (NDA signed Aug) as both working towards Sunday’s Term Sheet). Once LNG.AX became aware LNG & Magnolia were to be named in DeltaOE’s press release, an immediate trading halt (pause) was requested. All very logical. OK with that ... ASX?!
What’s interesting and contrasts with the VGS MOU is that:
1/ this is an MOU with mutual intent to ann. and sign a definitive SPA by end Oct; 2/ both parties will use all endeavors to complete within next 7 weeks (just as VG, Cheniere, others have done); 3/ FC stated as YE so quite possible (likely imo) other commercial negotiations underway (hello IDG).
Credit where credit is due. Management are very much focused on LT, bankable deals with* credible counterparties.
Whilst many felt LNG was a one trick China pony, we now have a stronger, far stronger partner signed up for the first 25%.
More to come and perfectly timed with Gastech in Houston underway.
If if not when, as I recall.
Even dominoes come to mind.
As for a CR, the cash management plan clearly shows a runway into 2020 even allowing for additional legal and NA listing fees. Clear now MB?
