Millennial Lithium founder and Chairman Graham Harris and I golfed together yesterday. We have played a few times before. He is an 11 handicap. A pretty good scrambler. Not an easy guy to win $5 off.

Over the four hour round I asked him about the takeover deal announced July 16 for Gangfeng Lithium to acquire Millennial in an all cash deal for $353 million (plus the $50 mil in cash Millennial has).

The story begins in 2002 when Harris retired from Yorkton Securities at age 40 for new challenges. He said rising regulation, commission compression and a bear market contributed to his departure. Harris spent a year travelling with his family and planning what to do next.

Millennial Lithium founder and Chairman Graham Harris

Ultimately he would get involved as a principal financing mining interests. 

Harris began with an Argentina-focused gold explorer ATW Gold. After disappointing drill programs the company was wound down. This set back ultimately led to Harris and team's greatest success.

As momentum behind electric vehicles grew in early 2016 Harris reached out to the Argentinian team who helped him with ATW Gold 15 years earlier. He asked them to source lithium opportunities and they ultimately found one in Salta province. The dormant public company that was once ATW became Millennial Lithium and was reactivated.

Farhan Abasov, a seasoned CEO was recruited and nearly $100 million was invested by Millennial to grow its land package and develop its lithium resources over the next five years.

Gangfeng Lithium is one of several suitors who have expressed interest in Millennial over the years and the deal announced last week is the culmination of a lengthy negotiation. The deal is still subject to Millennial shareholder approval and Millennial will receive a $20 million break-fee if Gangfeng does not complete the transaction. There is still also the possibility that other parties may try to outdo Gangfeng’s bid.

Harris is not yet celebrating the Gangfeng transaction. He would like to go on a big thirtieth anniversary trip with his wife if it happens. The Harrises have also started a non profit foundation and are looking to get more involved with community works.

The team behind Millennial are invested in and running a small Arizona gold explorer called Black Mountain Gold $BMG which Harris says they will turn their full focus to assuming the Gangfeng Millennial deal is completed.

Harris has not encouraged his three adult sons to follow in his mining footsteps because of the feast and famine nature of the industry. Although his example shows that persevering through a failure, teams can succeed on a future go-around. The key is picking a commodity with the right tailwind, and surrounding yourself with good people.

Harris and I conceded 4 foot putts to each other on the 18th green to conclude our match at all square.

A farmer and his son had a beloved horse who helped the family earn a living. One day, the horse ran away and their neighbours exclaimed, “Your horse ran away, what terrible luck!” The farmer replied, “Maybe so, maybe not.”

A few days later, the horse returned home, leading a few wild horses back to the farm as well. The neighbours shouted out, “Your horse has returned, and brought several horses home with him. What great luck!” The farmer replied, “Maybe so, maybe not.”

Later that week, the farmer’s son was trying to break one of the horses and she threw him to the ground, breaking his leg. The neighbours cried, “Your son broke his leg, what terrible luck!” The farmer replied, “Maybe so, maybe not.”

A few weeks later, soldiers from the national army marched through town, recruiting all boys for the army. They did not take the farmer’s son, because he had a broken leg. The neighbours shouted, “Your boy is spared, what tremendous luck!” To which the farmer replied, “Maybe so, maybe not. We’ll see.”