"From my understanding Mitsui will provide the financial part of the Joint Venture and LKAB will provide mining expertise and resource permits,"And need the mining permit from LKAB(Sweden)"
The Swedish state issues the permits. Talga doesn't need LKAB to get permitted. However, LKAB having a stake means additional revenue for Sweden (on top of taxes), so LKAB's involvement provides a financial incentive for Sweden to approve the permits. Also, LKAB is well connected with the approval boards, and they are unlikely to waste their time/money on a joint venture with a project unless they're confident permits will be forthcoming. From an environmental impact standpoint, LKAB is well versed in Swedish law so they can assist with cost-effective compliance. Taken as a whole, LKAB reduces permitting risks.
"From my understanding with a Capital Raise the price is usually a 20% discount to current share price."
We won't know the details of the agreement until we see it, but I view this approach as highly unlikely. I don't expect Talga will be issuing shares of TLG to our partners. My guess is LKAB will get shares in the graphite mine (at present, a wholly owned subsidiary of Talga). Mitsui is a bigger question mark, but it's not out of the question that they will take a royalty rather than equity (i.e. they would get a % of the end anode product). Alternatively, senior and/or convertible debt may be part of Mitsui's financing contribution rather than a straight purchase of equity.
"From my understanding Mitsui will provide the financial part of the Joint Venture and LKAB will provide mining expertise and resource permits"
I expect both Mitsui and LKAB to provide capital, likely more from Mitsui than LKAB. We aren't giving away a stake to LKAB for free.
"So if Mitsui will capital raise 168 Million for 100 Million newly issued shares for $1.68. "
This math and what follows is built on a faulty premise, IMO. I don't expect shares to be issued to our partners at a 20% discount to the current SP.
TLG Price at posting:
$1.78 Sentiment: Buy Disclosure: Held
(20min delay)