RE:RE:RE:March 12 2019 NEWS.Thanks Preeminant, appreciate you breaking this down for the ones who aren't as experienced in this industry. It's a very interesting development, look forward to following this one closely. GL to the longs
Preeminentone wrote: There are still some details to be worked out going forward. LSC's 300,000 hectares of lithium brine property Pluspetrol is buying includes the 93000 hectares DJI controls. Pluspetrol will need to spend 1.5 million in exploration to achieve the 51 percent control of the property.
LSC did drill DJI's property, spending 500k of the 2,000,000 JV agreement for 51 percent control. Resulting in coming up with some of the highest grading lithium brine in Argentina. Based on those results Pluspetrol will most likely spend the 1.5 million if results continue most likely they would negotiate a buyout of the remaining 49 percent DJI controls.
Of course at this stage of the game, the above is speculation. Until the buyout of LSC is done Pluspetrol cannot deal with DJI directly. The expected date for closing the buyout is March 15, 2019.
If you believe Pluspetrol will continue with JV buy DJI now. If you don't then stand on sidelines and see how this all works out.
If DJI ends up in JV partnership with 3rd largest oil & gas company in Argentina you will be paying quite a premium for the stock at that time.
No risk No reward.