RE:RE:RE:RE:The Why I think it's safe to say that most, if not all of us LME shareholders became shareholders largely because of the firm's commitment to an all-cash disposition in the short to medium term. And while market regulations - or LME's interpretation of market regulations - have prevented them from providing us not only details of any in-flight deal negotiations, but also not telling us much about their efforts to sell, I think we now have enough info to be comfortable that the firm is hard at work to sell LME - and has been for at least 3-4 years.
We know that they had a previous deal in flight that ultimately did not get done - at a price north of where we are today - with raggravating easons alluded to including the pandemic and the Russia invasion of Ukraine. I believe it was that deal - and the optimism that surrounded it that accounted for the energy in the stock - and probably a lot of new entrants to the stock in 2021/22. That deal didn't happen - but the team did manage to remain focused on developing the property and the overall health of the company - so that we don't just live to fight another day (nothing at all to take for granted in the junior mining space) - but that we are stronger and more valuable for the next set of negotiations.
It also appears that they learned some lessons from that experience - having since engaged professional andindependent help in sourcing and completing a deal. All you can really ask - some adjustments to their tactics to avoid a repeat. And that is where we are. Part way through our second set of negotiations.
We remain debt free and cash rich. Our executives remain very, very long their positions - owning the exact same class of stock we all do. The property continues to deliver strong results - and the team engaged to sell the company - after 18 months of company and market due diligence, just decided to continue their 'yet to be paid for' work - knowing full well that they will ONLY get paid when they get a deal done. This is their livelihood - and while that doesn't guarantee anything - it tells me what I need to know. And I will say expecting anything more - an actual guarantee - a result before a result - isn't rational or based on an understanding of how large and complex deals work.
If USCG fails to secure a deal - I would expect the LME team to do what they did before - learn whatever can be learned and go forward onto the next opportunity - all while continuing th maintain the health of the company and enhance its value.
Right now though - let's see if USCG's and LMe's confidence in the current effort is warranted. I hope it is.