I think what WSA have said is that they aren't interested in bidding for LL, but they nevertheless retain the right under the existing agreement to have first refusal if they match anyone else's price. From their point of view they would obviously want the 'next door' asset to add to their own resources but by just sitting back rather than getting involved in any bidding they would hope to keep the price as low as KZL would be prepared to sell at. I think KZL shareholders would be happy to approve a deal with anyone that brought in something in the order of $100M. That sort of sum would take all financial pressure off the company's activities in North Qld. Selling Admiral Bay is perhaps something they should think about, too. Although in the fullness of time it could prove to be a real company maker it is still a long way off and as they say: 'A bird in the hand...'
KZL Price at posting:
37.5¢ Sentiment: LT Buy Disclosure: Held
