George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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this shows that there´s a lot of project funding activity going on behind the curtain ... BCN will have to wait for all final approvals from China before they can publish their finance package which IMO is already decided ...
Securities pledge from Sonora Lithium to RK. Registered with Companies House.
https://beta.companieshouse.gov.uk/company/11349694/filing-history/MzI0MTg5MjMwMGFkaXF6a2N4/document?format=pdf&download=0
Interesting Tomcat, well found. Also of the opinion it is only some red tape holding things up. Their government departments are probably quite busy just now given the political situation.
My only thoughts are this was trading well into the 50's after announcement of deal. Now in the low/mid 30's, on deal conclusion surely we will see a 75-100% type rise. An almost fully funded lithium mine with a partner like Ganfeng can not be trading below £100m. It has to be more like £200m, rising through construction.
at the 35th meeting of the fourth session of the board of directors held on 28 june 2019... the company considered and approved the transaction with 10 votes for... 0 against and 0 abstention... and authorised the management of the company to deal with related matters of the transaction at its sole discretion...
according to the requirements under the guidelines on standard operations of companies listed on the small and medium enterprise board of the shenzhen stock exchange... and the articles of association, the transaction does not constitute a related-party transaction... nor a material asset reorganization as stipulated in the administrative measures for the material asset reorganizations of listed companies... and therefore... it is not subject to consideration at the general meeting of the company...
paying $160m for the remaining 12.5% option on olaroz...
pro-rata that on a simple % basis...
$352m for the remaining 27.5% option on sonora lithium ltd...
any arguments for a premium... or discount if you like mrc... based on other comparisons between the two resources...
Thanks Tomcat - also to allay any concerns re a possible impact from the recent right issue vote the HK exchange filing by Ganfeng in relation to the BCN deal states as follows:
(II) Impact on the Company of the [BCN] Transaction
In spite of certain net outflow of cash flow of the Company, the transaction will not have any noticeable influence on the working capital of the Company and has little impact on financial conditions and operating results of the Company for the year 2019.
It references subject to prc which as per last rns they have ?
Can’t imagine the other 2 being a problem
Thanks for sharing tomcat
Very reassuring
looks like pocket money to them
details of such... for reference... https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0628/ltn201906281856.pdf ...
22.5% sonora lithium ltd and 29.99% bacanora lithium plc next on the todo list... ;)
they’ve just completed on the olaroz acquisition... now 50% ownership of the project with jv partners lac... https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0818/ltn20190818013.pdf ...
agree with that tomcat-14,
and yes, your post on the Ganfeng H shares shows it was very tight:
As not more than two-third (2/3) of the votes held by the Shareholders and proxies who attended the
EGM were cast in favour of the resolution, the resolution was not passed as a special resolution.
For:
65.1593%
Against:
34.8407%
Not as bad as I thought, worth reading the pv magazine article again and with the voting so close it paints a very different pictue:
https://www.pv-magazine.com/2019/08/14/ganfeng-lithiums-hong-kong-based-shareholders-rebel/
You could very easily believe that 65% of holders voted against whereas it now looks like those holding 65% of Ganfeng voted on the issue of H shares of those voting 65.1593% were in favour just short of the 66%+ required and in fact just 34.8407% voted against.
Of course, the outcome is still a no vote but not a 'Rebellion' by any means.
Well if this was a Brexit vote we wouldn't be in such a mess now!
me2 jimb... and we know from bcn that the offtakers are impressed by the colour of sonora lithium... quality product... meeting tomorrow’s specifications...
rock, brine or clay?
https://seekingalpha.com/article/4286259-lithium-spodumene-producers-trouble?dr=1
Spodumene is looking very risky, I feel better about clay and producing battery-grade at the source .
rock brine or clay... which one is best... ;)
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0814/ltn20190814003.pdf ... it was a very close call... after all...
or ganfeng may need to cherry pick... and go back to their shareholders on a project specific funding basis... rather than a wholesale... combined rock brine and clay investment...
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0628/ltn201906281312.pdf ...
surely bcn will do their own dd on ganfeng too... there’s no point giving 30% of the company and 22.5% of the project to ganfeng... if ganfeng can’t support the defined funding responsibilities that come with that...
but there are other ways that ganfeng could raise the cash required... if their existing shareholders don’t want to chip in... conventional ways... and using a historical phrase... something unique maybe...
suppose ganfeng had a responsibility to offer it to their hk shareholders before they can pursue the alternatives?...
Just had a read through and can’t find any caveat that it’s dependent on their shareholder approval,?