You could be right aurifice but $8M is not a large outlay. I...

You could be right aurifice but $8M is not a large outlay.

I would suggest the main impetus for their investment is to secure favourable terms on the offtake.

When you think about an $8M initial outlay to hold a fair chunk of the company and secure favourable terms on millions of tonnes of ore for their steel mill, you can start to see why they may have been happy to throw in a lazy $8M.

The other issue, as i mentioned in an earlier post, is that it would have been unfeasible to buy 15,000,000 shares on-market without causing a huge spike in the share price anyway. Huaxi Group have done it the safe way and ensured they got their alotment (and control) at a reasonable price, allbeit at a premium.

I've actually exited because i saw the main upside coming from the offtake or takeover potential. This hasn't eventuated in a price moving way.

This leaves us with drill results/scoping study as the main driver. Now i don't know about anyone else but I never bought into LML because of the quality of their resource. We know it's fairly low grade, largely non-DSO ore. This isn't the sort of thing the market gets excited about unless the JORC is hyyyyyyyyuge; and costs are higher due to the beneficiation process etc although nearby transport is a big plus.

My thoughts are that there are many better plays out there if it comes down to quality of resource. Not saying a 25% return from here in a year isn't possible but if I'm going to invest in smallcap stocks, i think you need a higher risk/reward payoff than that.