It all comes down to due diligence. regardless of which space you operate you have to do very very thorough DD and then do more.
Clearly there were either some 'she'll be right' moments or lies told her by Hanlong or other parties.
thorough due diligence should have told you that Hanlong were never going to get finance (as of December 2011 they missed the letter of credit condition - which was a CLEAR RED FLAG).
Unless of course the strategy was to get the convention and mining permits wrapped up and then cut Hanlong loose and move onto your PLAN B which was partner with XYZ Ltd on a JV.
If thats the case, then ALL GOOD. If it's the former and SDL took Hanlong at their word, then clearly someone has made a grave error of judgement and needs to be held accountable wouldn't you say?
SDL Price at posting:
34.0¢ Sentiment: None Disclosure: Held
