General comments/chat, page-14740

I think merger unlikely, just like a merger with OAR is unlikely.

ADN have all they need in terms of high-purity Halloysite and high-purity Ultra-bright Kaolin. I think ADN zeroed in on Mt Hope because of evidence they had of these two resource domains.

The combined Ultra-Bright + Halloysite zone is about 30% of the material in ADN’s resource at Mt Hope, however on my analysis this is about 50% by value of the material they have at Mt Hope.



Also ADN’s Mt Hope resource is only about 13% by value of their total resource ( Great White Project + Mt Hope Project). So on that basis only contributes about 13% of “value” to ADN’s market cap.

https://hotcopper.com.au/posts/49803193/single

OAR & PNN would need to define similar volumes of the higher value material to the material ADN have at Mt Hope to be comparable.

Not to say they won’t but ADN selected the Mt Hope tenement for a reason. The SA government had spent considerable effort historically, analysing the resource that ADN have at Mt Hope. Perhaps just time-saving and lower-risk for ADN in acquiring to mature to production. Also ADN was only around $5.4M market cap when they picked up Mt Hope in 2018 and probably didn’t want to spend a lot of money acquiring tenements.