This from a CLQ announcement July 2017: "The Company has entered...

This from a CLQ announcement July 2017:

"The Company has entered into a small number of non-binding Memoranda of Understanding (MoU) for offtake of cobalt and nickel sulphate representing a proportion of Syerston’s anticipated production over the first five years of the mine life with counter parties who are well established in the lithium-ion battery supply chain.

The MoU's define certain key terms of the offtake contracts including volumes and pricing structure. As the Definitive Feasibility Study is progressed, offtake discussions will continue with these parties, and others, with a view to committing a substantial proportion of Syerston production under binding off take agreements"

This strikes me as both a sensible and the normal course of action.

Why you would have a 'binding' agreement before sample acceptance testing, BFS, Decision to Mine and Development Capital packaging is beyond me.

I would think that the delay is related to the ASX needing to clarify the nature of the agreement - in terms of just how 'binding' it is to ensure that there is no misrepresentation.

A semantic battle perhaps - to what extent is a binding term sheet with conditions precedent attached actually 'binding'?