Bullish Reversal Chart, page-1621

The idea of QM wants to sideline BEZ to take over BAU project is just even more crazy and short-sighted in my opinion.

The deal allows QM to terminate but it does not mean QM can take back 100% of the money that they have paid into the drawdown facility. Firstly, the party that brokered this deal earns 5% of the amount paid into the drawdown account. So, QM would lose that 5%. Secondly, the GPA allows the money to be used for drilling, pilot plant construction, DFS, and general working capital by Besra. There is no way the GPA was structured in a way that let QM to get all the money back. No way. At best QM would lose all the money that BESRA has expensed up to that time. This is a commercial agreement and it must have been structured by lawyers from both sides very carefully and it took 1/2 year to negotiate and map out all the terms and conditions.

But the main point is QM is to potentially reap multibillions dollar benefit from this deal PLUS 30% of Besra as a shareholder. The way it is structured is just brilliant for QM as a customer and as the biggest shareholder. BEZ has access to funding and has limited liability as a listed entity on ASX. Why would QM wants to sideline BEZ and end up with potential 5 years of legal fight, losing access to capital market as BEZ is a listed entity on ASX, losing the billions of dollars reward, losing a partner that help it get the project up and running while it is focused on its bullion trading core business, losing its status as a limited liability entity. It does not make any sense at all to me. And even if QM has the BAU project, it would still need to give away 50% ownership of the project to another company to develop it anyway and take on a higher risk of funding it as if AUD $450mil pre-payment package is not high enough risk for QM and could ultimately destroy and send QM to bankruptcy.

So, the idea of QM wants to sideline BEZ is just extremely crazy and short-sighted and most suicidal idea in my opinion.