Ann: Vanadium Fluorite Project Update, page-15

This announcement has positive implications :-

• Clear timelines on release of SS
• Cash-flow from potential sale of concentrates
• No adverse news to justify recent SP slump

“Development planning may very well include the option to export portions of concentrate production” – this strategy is important to ensure that there are steady streams of cash-inflows to support capex and financial needs for the future development of the Speewah and Windsor projects. Also, it will assure Strategic Partner that KRC has the capacity to raise its own funding (will help in its negotiations). Equally important, for shareholders, that KRC may not require further capital raising that may dilute shareholdings.

This tells a lot of the management’s thinking on how to manage its operational and financial risks. I believe they are on the right track. Kudos to the KRC’s Team.

Furthermore, I may surmise the following :-

• Strategic Partner (SP) is a foreign partner
• SP will be the buyer of the concentrate
• SP and KRC will jointly fund the development of the plants

Such “scheme of arrangement” will also protect the interest of SP as payments by them from purchase of concentrates should be channelled and accounted for for the plant construction.   A clear “win, win” for both parties.

As commonly seen in similar partnerships, the SP may acquire a strategic stake in KRC so that they may have an over-sight on KRC’s operations/planning. This is beneficial for the interest of both parties.

Long term shareholders should be comforted by this announcement. I certainly am.

Please DYOR.