"So apart from any other BOAs, we are basically committed to not...

"So apart from any other BOAs, we are basically committed to not just the 140,000t of spodumene concentrate in 2018, but very likely 280,000t of spodumene concentrate by sometime in late 2018 or early 2019 (depending on how long it takes to build a processing plant in Asia."

Where have you got this information from Ozblue? General Lithium clearly state on their website they have current capacity of 6500 tonne per year of lithium carbonate products and using the 8 to 1 rule of thumb to convert 6% spodumene to carbonate that equals 52 000 tonne of spodumene which they obviously already have a off take agreement for that feed stock since they are producing.

General lithium now have a binding Memorandum of Understanding (MOU) with Pilbara to establish a downstream processing joint venture to produce a minimum of 20,000 tonnes per annum of lithium carbonate and lithium hydroxide of which they will fund 50%.

Once again using the 8 to 1 rule of thumb that plant would require 160 000 tonne of spodumene so how do you come to 280 000 tonne? Also obviously they need this plant built to process the 140 000 tonne of spodumene so what happens to that offtake agreement if the joint venture for downstream processing doesnt eventuate?

Speaking of which what is the cost of a 20 000 tonne carbonate plant? Tianqi brought Galaxy's 17 000 tonne plant for US$230 million could this be used as a bench mark for the costs of a 20 000 tonne plant meaning Pilbara will have to fork out another US$115 million for half to even see this spodumene off take agreement finalised? What will the internal rate of return be for such a plant based on current prices? Do they have a off take agreement for the lithium carbonate? Question that need to be answered for potential investor I imagine.

Basically because of the possible down stream processing jv it appears the off take agreement really is only 70 000 tonne to General lithium and 70 000 to Pilbara themselves. So for a 70 000 off take agreement they get to own 3% of the company by paying A$17.75 million valuing 100% of the company based on that deal at A$591 million. Cant see any further potential offtakers wanting a worse deal.