RE:Updated December 2022 Corporate Presentationbtb, HELM is owed $3 milllion dollars by Gsp which has been drawn from the credit facility.
I would assume those funds were intended to increase Gsp's chances of finding an Equity partner, which to date has not materialized, and now that credit facility is more than half drawn.
Based on some of the previous arrangements in the potash sector including Encanto, Western, Karnalyte, etc, an initial 51% / 49% partnership has been sought by those looking at moving the needle with financial investment.
Problem is, with increased percentage of ownership by deep pockets in any project, less control is maintained by said potash company. Larger board presence, etc You get the drift ......
Wasnt the Essel deal also a proposed 49%/ 51% ownership structure did not come to fruition, and that was for the entire Vanguard lease, was it not?
Since that time it could be argued that Gsp is in a weaker bargaining position than 2016, which could reflect greater ownership expectations from anyone willing to partner with Gsp to develop the Tugaske project.
Greater ownership from outside entities, mean less ownership by Gsp and as a direct result, less ownership by shareholders
Be careful what you wish for ......................................