Ann: Tawana & Alliance to Merge and Capital Raising & SIA, page-184

There will be very significant reserve and resource upgrades coming up. Otherwise Mark wouldn't spinoff other assets and just keep the Bald Hill crown jewel. Every move is carefully crafted.

This latest merger is structured to appease both tawana and alliance shareholders, getting substantial shareholders to agree to the merger asap with minimal resistance. Sure there will be unhappy retail shareholders (mainly from tawana). But people need to look past the details of the deal and look at the longer run. The sheer size of the combined entity is going to attract a premium valuation. Not to mention operation efficiencies and lower operating costs.

The combined entity can possibly even rival PLS in the near future. Bald hill is producing a premium concentrate grade of 7%, which nets us$1030 per ton. On completion of 2 DMS circuit, bald hill is likely to run up to 500ktpa of spodumene. Which means the combined entity is going to have like us$500m of revenue yearly just on Lithium alone. How many companies can achieve this? This is a Lithium blue chip in the making imo.