It's interesting that you think that way. I note that Stanmore signed an agreement to with HK based Sprint Capital for funds of $36m (combination of shares and notes). $13m already received, the balance payable after voting at AGM.
I'm curious to know why Sprint was happy to release funds when they could have easily arranged an option agreement and/or agreement to release funds based on the Xstrata's decision to develop Wandoan.
It's not as if Stanmore needed the funds right now since it had $10m in the bank and $21 million in undrawn loan facilities.
Not sure what else Stanmore could do other than base their success on Xstrata's decision to mine. All Surat basin hopefuls are dependant on Xstrata - that's the reality unfortunately but it doesn't mean the coal in the ground is worth nothing.
SMR Price at posting:
28.0¢ Sentiment: LT Buy Disclosure: Not Held
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