hi wagon,
the SQZG extension was announced early June, it said that SQZG to seek an extension to the due diligence period of the LOI, for up to six months, which obviously would take us to end of Dec, 1st week of Jan etc.
as we know, the reason was the review now was to incorporate a formal review of the Ancuabe graphite project.
a couple of points from my opinion.
1. we are expecting some results from Ancuabe very soon, this should also assist SQZG in such decision.
2. the market has already discounted the Ton sp that SQZG will not part of the Ton model moving forward.,
3. GMP also place no value on a SQZG LOI and expressed their views and made clear their assumptions.
4. SQZG may still choose and commit to funding, even though the market and GMP views are alternate.
5.a in June update announcement, SQZG also stated it received inquiries from Ministry of Commerce (MOC) & Ministry of Land and Resources (MLR) of the People’s Republic of China about Triton’s graphite projects and as such SQZG considers TMG to potentially be of strategic importance for China.
5.b whilst frustrating to to Ton shareholders and management and the market, IMO there still may be a possibility that SQZG grabs the bull by the horns before the close of the bell to front up with clear and binding intention waving Pen in hand, which can only be established until point 1. becomes known to both Ton management and shareholders and market, thus SQZG in which IMO if the results come soon, then SQZG can actually finally base a decision upon such and notify Ton management and the market accordingly.
in which case it will be then I would have to agree and also believe that if Shenzen leave it until the end of year (dec) then any such probability of converting the current LOI into a Binding agreement will be zip.
meanwhile, the No answer appears already factored into the shareprice.
yet "what if" after drill results and further details from Ancuabe comes through, and SQZG then say Yes?
imo it would then be both logical and fair to say the sp would require some re-valuation upwards should the set of events above come into fruition.
TON Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
