I think that they will get FIRB approval, FIRB have approved several projects in the past few weeks, with the Chinese having more than 50%, This is how I see it
1 Hanlong are a private Company ( not state owned)
2 Moly is not a strategic resource
3 Mol needs a partner with the cash
4 Hanlong should have little trouble raising the loan because MOL will have cash in the bank and income from Iron Ore.
I do have concerns, management awarding themselves huge bonus for a deal that gives away control. Unacceptable pay rises, which I think we should vote NO.
With regard to the SSP and the current S/P I do not think the Company are concerned. This will raise $16mil towards the debt with TCW. Once FIRB approval comes through the share price will head north, and probably like a rocket.
These are only my own thoughts and time will tell if I am right or not.
MOL Price at posting:
87.0¢ Sentiment: None Disclosure: Held
