I've held both companies over the past and yes while MEP will have to come up with 25%, i'm sure once the PFS comes out, there's not going to be much problem raising the money. They are invested with Newcastle Uni for further advancing Halloysite applications, which would be indicative of their commitment to this JV project with ADN.
MEP Jericho JV is totally funded by OZ so no outlays there, and its funded through to complete mine build. They get a free pass on all loan payments until production (20% to MEP) and if doesn't get to mining stage, then all debt is wiped.. They run a reasonable tight ship IMO.
Yes. They have a tiny MC which could mean (purely on Pooch)
A) they are undervalued compared to ADN
B) ADN overvalued compared to MEP.
It has been said by the Management many times, the strategy of JVing projects allows less SH dilution. This is well known.
Personally, I'm watching and waiting to see how this unfolds over the coming weeks to jump in to either MEP or ADN. Both have a solid future IMO.
GL all
ADN Price at posting:
2.6¢ Sentiment: None Disclosure: Not Held
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