Russell hasn't had the reins for 7 years. Once he took over from Jim, he was able to obtain an agreement with Geoff (Quarry & Head Lease) owner within a month or so. This is something John, Ian, Leon & Jim weren't able to achieve.
The tungsten price was depressed and has recently increased above the cost of production. If we had accepted the Mitsubishi deal, we wouldn't own the project as we would have defaulted on the loan due to the fall in tungsten price (see Wolf Minerals).
Geoff isn't going to wait for ever. The company has announced a number of parties are undertaking due diligence. This process takes months not years, so they should be getting close.
I pose this question to shareholders.
Do you want a quick deal that gives the value in the project to offtaker- heavy dilution (who are generally very large companies)?
Or
Do you want management to try and retain the value for the shareholders and do a deal that is fair for all parties? The later one takes more time.
Russell knows we have a very good proven asset (Mitisubishi proved it). The game has been how much of it we get to keep. There is a fine line between getting screwed by the larger companies (heavy dilution) and holding out to get a better deal, but you risk also going to the wall.
That's the game Russell has been playing behind the scenes.
If you don't like the game, you can always sell.
