re: Ann: Strategic Alliance Agreement - Sojit... i am reposting...

re: Ann: Strategic Alliance Agreement - Sojit... i am reposting under this heading to insure my thoughts don't get lost in yesterdays euphoria
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can anyone read here?

the Sojitz deal does not guarantee $US250 million, it simply states that BOTH Lynas and Sojitz "will use commercially reasonably [sic]endeavours to...SEEK a funding package of UP TO US$250 million"...

that is NOT contractual language that guarantees US$250 million will arrive

it is NOT contractual language obliging Sojitz to provide US$250 million

it IS contractual language obliging BOTH Lynas and Sojitz to work together for TRYING to find UP TO US$250 million

it IS contractual language that allows Sojitz to STOP TRYING to amass funding of US$250 million if it becomes too hard for Sojitz to achieve, provided that Sojitz used 'reasonable endeavours' before they stop trying to get any US$250 million package together

therefore this announcement reveals contractual language that is VERY loose and open-ended - 'reasonable endeavours' assures and obliges nothing - essentially Sojitz is not obliged to come up with the money, nor have they promised that it will arrive - they will just be helping Lynas try to get that money, and nothing more... - and hell, there are a million other blokes who will try to help you raise money if you are going to give them a cut later if they are sucessful...

otherwise this agreement is a statement of 'objectives' NOT contractually guaranteed outcomes

everyone needs to take a few breathes and have a little re-read of what is actually stated in the announcement, instead of relying upon flash business news re-interpretations of it

good luck