Very interesting debate on this thread. obviously the off-take...

Very interesting debate on this thread.

obviously the off-take deals for Stage 1 are the key to de-risking this whole project and justifying the Li Choride early produduction strategy. The company wouldn’t have entered into this stategy in the first place unless Daniel J hadn’t been able to assure them he could secure these deals.

It would make sense for Galan to ask for a pre-payment structure, and hence avoid dilution. An obvious recent analogy is Glencore’s pre-payment deal to Eramet in Argentina announced three weeks ago. Glencore paid up $400m for 50,000 tonnes over five years. If Galan got the same terms it could raise $200m for this Stage 1 project, more than twice what it needs.

If an off-taker were to invest cash in this project now, it would want to see the DFS and permits first, which have only just come through. They have also only just got the samples. Realistically it will take at least two to three months to finalise an offer in the region of $75m. Since they will all be under NDAs the company can’t provide a running commentary on this process.

Once these deals are announced, the market will finally get it and the shares will likely race past $2.

Therefore anyone holding the stock now should be taking at least a three month view IMHO. It doesn’t particularly matter what the share price does in the interim.