I’ve been browsing through the March 2016 quarterly and came across the following:
For the acquisition of the Mt York Project, the issue of the first and second milestone shares to the vendor is contingent on defining a resource with a grade of 1.2% Li2O (there are other criteria but not relevant for this discussion).
However, for the Wodgina East Project the resource grade hurdle is subtly different, i.e. “no less than 1.2% contained lithium.” 1.2% contained lithium is equivalent to 2.58% Li2O, double the grade hurdle of the Mt York Project.
I had not picked up on this subtle difference previously. So why the difference hurdle rate for issue of milestone shares? Does KAI believe that Wodgina East is more promising than Mt York? Does it even matter?
Just my interpretation but would be interested to know what others think.
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