GXY has a 12% stake in Alita and is NOT a creditor (probably rather foolish by management to not be involved in the debt).
Given the Alita notice over the weekend (Tribeca calling event of default) and a standstill only reached until tomorrow at 5pm.
If you are the board of GXY why don't you make a GO for Alita at, say, 0.10 AUD per share and get Alita at a steal?
recall, what GXY chairman said about their investment in the company when he paid 0.20 AUD for his stake 3 months ago:
“Galaxy has been a minority shareholder of Alliance for some time, and we welcome this opportunity to increase our holding and become the largest individual shareholder in Alliance. Galaxy recognises that the Bald Hill Mine produces high quality spodumene concentrates and believes that the tenements surrounding the existing Bald Hill Mine operations hold substantial value potential, that may be unlocked through further targeted exploration and work on resource delineation. “We look forward to cooperation between the two companies, and sharing our Mt Cattlin experience with Alliance.”
IF GXY does not get involved, allows Tribeca to get in control of the situation, it falls into Administration and it becomes a competitive process GXY has just wasted an opportunity as it might not become the eventual owner...
1- to buy a neighbouring mine with interesting exploration upside 2- consolidate the Lithium space which is needed 3- shown it is reckless by taking minority stake by investing GXY shareholders money and risking 100% loss in 3 months time!
GXY Price at posting:
$1.13 Sentiment: Hold Disclosure: Held
