It is a crazy justification for an investment strategy. Here we sat on a mining licence for a lithium resource that went undeveloped for years until the market moved and it became a viable prospect in which to build a company around, and raise further capital, specifically to organise the task of mining that resource. Investors invested in Goulamina for what it possessed - one of the world’s largest untapped spodumene resources - and to capitalise on the expenditure already undertaken exploring it by investors in the corporate parent/predecessor. Leo was specifically created to build and mine Goulamina, not to become yet another ASX-listed greenfields explorer.
Flash forward to now, where they are seemingly looking to scramble about in search of something somewhere to spend the cash stockpile on, that just so happens to be ‘on the market’ right now. Cash that was specifically raised for another (failed) purpose and for which they’ve only gotten just a tiny sliver back for hapless investors. This talk of “because we’ve got an ambitious board and management team already established” is a back-to-front attempt at justifying the redirection of this capital stockpile into another pet project just to continue paying the salaries of a team that was established for an entirely different task. For investors, it is going to be Groundhog Day, and back to square one, unless it is going to buy us a tier one project that is less than a month or two away from commissioning in a minimal risk jurisdiction with a similar NPV - i.e. none.
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