So they don't have to pay NMT or MIN for any lithium that is mined.
The mine would be theirs to do what they want with.
The take-or-pay agreement would then be ripped up.
NMT has the right to take 51% of anything produced from MT Marion from 2020. That means Gangfeng would then lose a significant supply of lithium. That's not good news in an industry where all customers are scrambling to secure supplies. I believe when NMT announced the sale of the 13.8% they retain, Gangfeng was interested but their shareholders knocked it back?
If NMT has started construction of a processing plant by 2020, NMT will need feedstock for the plant. We don't know what HNR will find & how long it will take to construct a mine or receive financing. Gangfeng would know of NMT intensions & needs to secure supply.
