blackrock funding, page-18

Hey Bobsa...

The royalty nature of the Proposed Transaction with BlackRock facilitates the US$12m shortfall, without incurring shareholder dilution...meaning the Pro-rata cash input from BR would be paid in installments with disbursements of the US$58 million senior debt once all aforesaid conditions have been met...As was said to me by management, this also means importantly BR are satisfied with Avanco’s strong operation capability and Brazilian expertise and hence has not expressed any interest in Board positions...meaning BR has no interest in interfering with the AN operations or the direction of operational management planning...another good outcome

BR's main game is stage 1 all the way to stage 3 in toto... they are in the business to get a healthy return...where AVB definitely needs the 12M to trigger the 58M to build a mine at AN...AVB effectively loses approx 3-4% of the value of in ground metal...that's the net cost of doing business if AVB wants a mine at AN...IMO there could have been MUCH more costly outcomes...TP etal have done VERY well inconsideration of the difficulties of converting exploration assets to fully operational mines with the ongoing fragility of global macros...management needed to get this over the line, now not later...dyor

PS: Best regards mate might see you at the AGM this year