One has to wonder why an Australian mining Company currently in the phase of raising money for Construction and not yet in production, so currently unable to meet any financial out flows; would enter into an Agreement to purchase a 22% holding in another overseas competitor,
OK I could understand it if it was a Direct Investment, but apparently it is not, it is merely a transfer from the current share-holder Oakbridge, being a hangover from Mountain Pass days ! Therefore if this transaction goes through, I can see no reason why Neo would feel obliged to assist Hastings > In fact if I were a Neo shareholder, I would be insisting that my BOD ensure that any Non-Executive Directors that HAS nominates, be kept well away from their Data Room.
Summation: Hastings management appears to be committing the Company to repaying a financial Instrument, which if things go turtle, could result in a substantial penalty to the current Shareholders. And also, why should Australian Tax Payers (thru NAIF) be interested in funding this investment into a competing Canadian Company when they have provided those funds to progress the Yangabba / Onslow development ???
HAS Price at posting:
$4.85 Sentiment: None Disclosure: Not Held
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