The thing your missing is that VZ will not give the permit to KRY for whatever reason plain and simple. Kry has threatened arbitration if we don't get the permit and this deal with China is our last effort to mine LC.

VZ has promised China the permit when they get KRY out of their hair. VZ doesn't care if KRY is involved behind the scenes as long as VZ is dealing with China and the permit is goes to a Chinese entity that is politically correct.

The deal CRRC/CREC is doing with KRY is to form a new JV subco that has KRY as a minority shareholder. I sincerely doubt the name will reflect KRY's involvement at all.

Now look at it from Hugo's perspective. Why would VZ issue the permit to anyone before the shareholder vote to form the company that will receive the permit. Lets say VZ does issue the permit to either CREC/CRRC or in the name of the new JV and KRY shareholders decide to vote the deal down knowing that if they decided to go for the whole prize through arbitration VZ has put the final nail in their coffin.

How can VZ make any claim why they didn't give KRY the permit if they had no problem issuing the permit to the Chinese. They can't use environment or any other excuse since the permit was already issued to CREC/CRRC using KRY's plan. Kry's arbitration case would be undefendable by VZ other than to say it was personal or political.

This is why I believe the shareholder vote will be taken without the permit but only close with the permit. Again no permit no deal.

Would KRY like to have the permit before the vote? Dam straight they would but it won't happen. Having a vote on a deal without the permit is no big deal for me. The vote will be yes and now the spotlight turns to China to deliver the permit.

How do you think China would view Hugo saying after the vote, sorry but I have changed my mind. NO PERMIT FOR YOU! The pressure is all on China to deliver or look silly and from what I know of deals involving China they don't play games.

What is the worst thing that can happen if we vote yes on the deal with no permit? VZ gives China the finger and say no. The deal dissolves and we still have a 100% legally binding MOC and $30 million in the bank to start arbitration. We may even have the Chinese on our side to help with arbitration by buying out the note holders to become part of the settlement.

Bottom line is the A&F will get done and announced soon. Shareholders will vote yes. The fight we've had with the school yard bully HUGO will now become Bruce Lee vs HUGO and I will put my money on the Dragon!