Ann: Launch of Proposed Senior Secured US$40m Loan Note Issue, page-221

Its a good thing Pareto have just completed their very extensive Due Diligence ; )

That is why our Binding Term Sheets have pre-agreed pricing mechanisms and we have gone over all this before.

The Binding Term Sheets will evolve into Binding Offtake Agreements very shortly.

I wouldn't be worrying about WKTs Binding Offtake Agreements, I would however be very concerned as a company and as a shareholder to what will happen to other companies BOAs when WKT goes into production and will have the ability to expand beyond the initial 40K TPA very quickly, especially as we use all that unrestricted funds (cost blow out money you eloquently mentioned) as we unlock all the restricted cash accounts as we de risk the project ; )

I hope you called your management of your preferred Graphite Company and asked how it works and why it must work this way. This is the best approach to ensure the company gets the best upside in prices, where I suspect other projects will be forced to lock in their offtake parties at a set price today and not see any upside in the rising prices for 3-5 years there after.

That would be a big negative for their shareholders, however Investment Bankers are likely to impose that upon companies that are borderline viable.

Be sure to watch your own and other BOAs over the next 12 months ; )