The deal is value accretive, spend $175 mill via CR at 7.7% discount to buy a working mine with enterprise value of $450 mill, thus zero dilution. Yes, it is a loss making mine at current lithium prices and needs some money spent to improve recoveries.If spod prices do not materially improve in the short term, leave it in C&M mode until prices do. In doing so, removing 200kt of spod from market, which would likely increase prices immediately. Good for all
Also consider PLS market cap will increase to ~1.4 bill after purchase, thus will venture back in the ASX 200, thus more interest at BEOT. Yes, as per Kaeho post, PLS are taking on the risk, however the border between each project hosts very fertile ground for the white stuff, but at present it is sterilized ground and cannot be mined by either party. So, if deal goes through, resource upgrade, more value.
