Say NO to TO!

So to recap what we all know. LIT intends to make a takeover offer for LPD, before the 3rd April. The premise of this TO is -

"LIT believes that combining the companies is in the interests of shareholders of both companies as it will bring LIT’s SileachTM process and LPD’s L-Max process as well as each group’s other intellectual property under common ownership"

The current offer from LIT looks to dilute LPD holders exposure to LMax by a massive 66% (Apx.) Based on MC's, basically in exchange for Sileach. (Tenements etc not withstanding)

LIT at this point,  have refused to release many critical elements relating to the commercial viability of Sileach. Why??

ANSTO testing on Lepidolite was completed in Sep 16. But we still have no confirmation of recovery rates, environmental impact, cost analysis etc. yet they will be asking us shareholders to make an ill informed decision to merge with them. This is not appropriate IMO!

Once again thanks 2chance for your work.



This looks to be the reason why, note the recovery rate from Sileach of less than half the Carbonate produced (and at a much lower grade) from over double the amount of the same ore feed! This is significant to say the least and clearly demonstrates the reluctance of LIT to confirm the feed grade at input and related recovery rate.

Later we hear that Murdoch University have taken that small amount of Carbonate, and with further downstream processing pushed their grade from 99% to 99.5% for an unknown quantity. Still no recovery rates mentioned by LIT!

This point is not to be underestimated and is in directly critical to the viability of Sileach. Yeah you scraped in battery grade, but how much of it and at what costs?

As for Spodumene processing, well initial testing is being done right now. Assuming this turns out to be successful (headlines excluded- the devil is in the details), it will take years of development to responsibly get it to the DFS stage. At which point most Spodumene developers will be well advanced in terms of investment of currently available methods. In fact, LITs closest ally in this space, as it seems, PLS have not even bothered for these ANSTO trials to be completed. They've already committed to a conventional Spodumene concentration plant. Says something right there, doesn't it?

So LIT, don't patronise our intelligence. Give us the information we need before asking us to dilute our exposure to LMax, which continues to prove itself in every way, by 2/3rds. In exchange for what??

Not to mention the court case, which best scenario for LPD, we annihilate a competitor, on our terms. Or worst case, we gain a competitor and we keep marching along to PFS/DFS regardless.

Should this deal go ahead we also risk losing or at least alienating the brains that developed the tech that will be crucial to its likely success into the future.

I'm going to ask for a rough show of hands (please LPD holders only, ill be looking)
in which way your inclined to vote, based on the limited availability of information we have at this stage.

I think the reasons not to, have been discussed thoroughly over the past year.

So if you are thinking a merger is a good idea. I'd love to hear your reasoning why? Also, disclosing if you also hold LIT.

Personally, I would never disrespect a fellow holder so don't be shy to voice your opinion.
It would be nice if we could all have a civil discussion about it and see all angles of the debate to enlighten our own thoughts around the prospect of a merger.   

Cheers!