This is a matter of what they want to reach with the parties and what would be required to close this agreements. If CDB & Signet would merge it might be possible CDB want to increase the share price by an announcement. I guess they tried but it did not work.
So what will they do ? Extend suspension... by a week or two.
Why i guess on a merger ? CDB stated there's huge potential on the Coal assets. And they want to drill for $ 5 mio. Under the terms of the agreement, Condor would invest about A$5-million in Signet to gain an initial 24.4% shareholding in the project. The funds would be used to undertake a drill-out of The Duel project. This is pretty much for nothing ! But before a merger a company want always to increase the share price. Of course !
The increase from a low of $ 0.005 to $ 0.019 was to short. If they would done the merger at this share price it would be to much dilutive. Maybe Signet would accept a cash payment of at least $ 3 mio and a performance payment. I think Paul has enough connections to other parties to get a Jonit Venture Partner.
The Duel Project
Condor is in a Heads of Agreement with Hong Kong company Signet Coking Coal Limited that grants it the right to acquire a majority stake of up to 50.3% in The Duel and Tshipise 2 projects
This is currently being reviewed by an independent third party though an initial Project Exploration Report stated that Tshipise could host multiple hard coking coal projects while The Duel project could easily supply the majority of South Africa's imported hard coking coal quota of between 3 million and 4 million tonnes per annum.
Offtake agreement might be prepared with this third party. Now it is important to prepare the agreements one by one. This takes time.
Anyway no one knows anything... Just my opinion !!
CDB Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
