Mick,Yes, but their is also the issue of due process ab out the...

Mick,

Yes, but their is also the issue of due process ab out the sale i.e. ADY is maximising the price it could receive from the sale.

AED, an oil producer got itself into strife 12 months ago. It drilled some wells and didn't come up with the oil flows it was then expecting. Owe both bank debts and creditors amount that make ADY's outstanding debt look relatively trival.

AED commissioned Macquarie Bank to look at bringing in a partner or some other solution. The end result was that a large number of oil companies considered the investment and SINOPEC paid AED US$600M for a 60% share of the projects. AED paid off its bank debt and creditors and now has A$300M cash on hand and still retains a 40% interest in the project and has the cash to fund its share of exploration and development of the project.

In contrast, ADY was/is proposing that the whole project be given away for an amount that would pay off its bank debt and leave it without any stake in the Lithium project. Yet it is not obvious that have sought out a large number of expressions of interests that would increase the chances of receiving a higher price and/or retaining a stake in the project.


Regards

SP