Why would SDL be looking to raise $50-100 million or more and dilute the shares by asking Don Talbot to put in more. Unless Don Lewis and George Jones are lying they would not need more. they have said. Partners in the project to be known in the first half of 2009.Financing to be in place by the end of 2009. SDL will be getting around $50 million from the Cameroon Government if they sign up by the end of 2009.If they ask for this money to be taken out of their share of profits when the project is up and running they would be up for 50% of infrastructure cost's that have not been expended yet as well.I believe the Government will sign off and hand over the money as soon as financing is in place which SDL said would be end of 2009.
We should expect financing to be delayed in the present environment because of companies planning in uncertain times with talks in progress on iron ore pricing for 2009-2010 by the big players and China.
Also with more interest shown in helping to fund the projects.Twelve funders at last count.Some funding will be offered by people like The African Development Bank,the United Nations Development Bank for different parts of the project.On top of this will be Steel mills,other companies perhaps like RIO.There will be other groups like CITIC who will look at funding the complete package.
This will take longer with the more people who are interested. I read somewhere a Chinese group were looking this month.
They had $19 million at the end of December plus $10 million in the raising to come,so how is all the money gone. All the drill rigs are not gone.They are sending a rig to the Congo once the engineer has reported back. I think they spent about $40 million in the last twelve months with 6 drill rigs drilling flat out plus paying for studies on port,rail and other things including costs of lab work on the drill cores.
From January 2009.Don Lewis said the current international financial crisis should not obstruct the project,even though it fairly changes its financing system.
A post from (Vendron) on 9/12/08 from Dow Jones Newswire on 4/12/08 said in part.About Sundance and Sphere.
Sundance had started to receive non-binding proposals-three or four were presented last week,:he said.
Sphere Investments Ltd and their French partner have iron ore in Mauritania a US$2.2 billion project to ship 7 million tonnes a year of iron ore pellets from existing deep water port and rail system in Mauritania.They hired UBS to market a 49% stake in the project.UBS expects to provide an information memorandum to around 20-25 prospective buyers in the next few days. Sphere have been exploring in Mauritania for 8 years.Sphere has around $20 million in cash,enough to keep operating for three years and beyond.Sphere hope to have a sale concluded by mid-2009.
Regards Westcott.
SDL Price at posting:
7.8¢ Sentiment: None Disclosure: Held
