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22/04/22
13:50
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Originally posted by w27:
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I was going to post that the most likely suitor was Mineral Resources, but it has already been posted. It is probably a waste of time posting about it now as we will know on Tuesday. However, I thought I might post my thoughts. MIN own Mt Marion to the North of us. They have recently acquired the lithium rights to a large area of leases, mostly granted mining leases, owned by PNR and TUL, immediately to the south of Pioneer Dome. It was a very generous offer, in my opinion. Chris Ellison has stated that he intends to get more than 50% of his revenue from lithium in the future and has aggressively pursued lithium. In a past life, I have had dealings with Chris and in my experience he tends to make generous offers for undervalued assets. It discourages competitors. MIN are the natural owners of our Pioneer Dome assets. As well MIN have no history of mineral exploration and development. They may be attracted to an established explorer with a history and knowledge of the area adjacent to their new lithium country. They are committed to an aggressive exploration and development schedule. In the past Chris ahs done deals where he buys control and leaves the company listed. He sees this as the best way to get leverage for his balance sheet. They quite likely have most of the components for the necessary plant sitting in their yard in Perth. The scenario I would see is something like this: An all paper offer for 51% of shares (and options) at a valuation of $2.00. MIN would agree to provide loan finance to advance the project to production and probably provide the plant on a BOO basis. That is their core business; and also finance an aggressive exploration program. We should see an immediate price increase to about $4. This is one of the things that Chris would be looking for - an immediate improvement in the balance sheet. As an immediate uplift I could not see too many people complaining about a deal like that, and a win/win situation.
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MIN is also a JV partner for trains 1 & 2 at Kemerton. Ties in with my Albermarle suggestion earlier in a way. I'm not sure if anything is going on behind the scenes to get more feedstock for future trains at Kemerton or whether MIN are in any negotiations with ALB at all beyond T1 & T2. The MIN tie up seems very plausible.