The following is pure speculation and opinion - please don't take my word for any of this - just trying to think through the situation with very limited knowledge.
If you look at LBSR from a 10,000 foot view you've got a company with a market cap of about 300K but owing several millions to noteholders who in turn are holding the prime asset as collateral.
Somebody posted the amount owed and I don't recall it but I think the figure to close out the notes and goose the company was 5 million.
One question is 'What would it cost any company to establish the land packages LBSR has (all- Bonanza Hills, the Pipes, and SC) and to do the exploration and sampling etc., if they started from scratch - even if it were possible. I don't know but it would be a lot more than 5 million.
So if you are an 800 pound mining gorilla and want a stake in the caldera, the price to get a big piece of this action has got to look like chump change. Given that, there should be no question whether there is a line of companies competing to get in the room, which further means the needed money is waiting on the sidelines. (again - definitely opinion only)
So, if this logic makes any sense, the primary question is how is the pie going to be cut up. All parties bring something important to the table - mining & land package expertise (Briscoe), money (the gorilla), and the notes/collateral (noteholders). It only makes sense for the group to come to some sort of balanced agreement - in this case the sum of the parts pulling together is definitely more than the individual parts alone.
Is this line of reasoning off base - would appreciate comments and other points of view.
Currently long
Do your own DD - the above is opinion/guesswork only
F9