No doubt they missed the boat at beginning of 2019.
What went wrong was IMO strong believe hat that new offtake will be finalised soon and BH will turn into nice income earner paying for drilling and fines.
With our partners not ready (or willing) to meet regular purchase, high costs of production and heaps of corporate and merger expenses, money went down very quickly and search for extra finding was urgent.
Without plan B, a deal was put quickly together to get GXY into register as the only way to keep going with hopes on finding new spodumene buyer in the next couple of months.
Tomorrow we are going find out outcome of plan B as recovery in lithium prices/demand are nothing more than a guessing game.
My money are on handing over BH to GXY either late this year or beginning of 2020.
I would not be surprised our BOD presenting this as a great outcome to shareholders ( obviously new not LT holders) and face saving exercise.
For GXY to do TO will depend on their decision of investing more on SDV or JB ( either should be done within next 3/4 months) and our drilling results, JV and new offtake becoming binding.
With only 3/4 years of Mt Cattlin left, GXY would need to provide some answers to the market on their plans. Argentina, Canada or Australia (BH) or they will see their SP below $1.00 very soon.
I can't see us going into C&M as this will be breaching one of major points of terms outlined in negotiated now JV and GXY is eagerly waiting to replace us.
Either way, current SP is IMO at big winning odds to double on investment with our BOD finding way to get us out of this hole or T/O by a "friend".
I am sure this announcement will be a key for many to make decision on staying or walking away.
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Held
