teddie. Sadly, you have missed the point with the very biggest issue facing LKE at the moment regarding shareholders' confidence in their management, and it's got nothing to do with offtake agreements. It's FUNDING, big time FUNDING.
That $25 million, or an equity partner, is the crux of LKE's very future. It NEEDS serious cash and with continual pissy placements, with the SP where it is, are really the very last resort.
And where do you think that funding is going to come from? Australia? Ha. Top of the list will be China or South Korea, followed by Japan and the elephant in the room, a car manufacturer. And what would ANY lender think of a company with a SP of 3.5 cents, a MC of $18 million and a BOD that hasn't got the confidence of its shareholder, or, worse, having just experienced an overturn from a shareholder vote of no confidence?
LKE holds 100% of those 3 brine properties and you can bet your proverbials that some (much) of that is definitely on the market. Just look at the incentives being given to the BOD to see what their priorities are.
The Amvest deal just proves how difficult it is for a small mob like LKE to get ANY funding and in this market, something is FAR better than nothing. It's LKE's lifeblood while they are unable to get real cash and like them or not, we are stuck with them until that happens. And, frankly, we should be grateful that we at least have that option,yes, it's just an option, while they keep trying to get their main objective.
The killer with Amvest is the effect that it has on the SP with the way the lender is using that conversion provision. Maybe Steve had no choice, he did at least have the interest rate reduced, albeit it looks like the lender has no interest in the interest rate anyway.
Amvest, without the conversion provision, as many other CN deals are done, would be great,but, it has been proven to be a disaster when they are used as a trading tool and not just for income. It's a double whammy, first to the company trying to get funding with a pissy SP and definitely wears away the confidence of its shareholders, seeing every piece of great news being drowned out on the market with shares being dumped at any price above the conversion rate.
The PFS will be helpful for many reasons, but, won't be the catalyst for a re-rating, it will just be ammunition for the BOD to get serious funding and/or equity interest.
.And others have probably already anticipated the pilot plant's effect, but, it needs to happen and obviously needs to be successful.
With the PFS and a success with the pilot plant, that puts management in the position needed to create that sustainable re-rating that they and we are looking for.
And, everything is on track, right now, towards achieving that goal.
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