General Discussion Topics, page-1740

Did some more research today. I have been scratching my head about how Sayona might fund Authier or both NAL and Authier. Authier alone has a CAPEX of $120M and about 1/2 of that is in the form of a processing plant. ($65.8M), so we will need some way of financing this amount and it can't all come from share holders. So I began looking into what is acceptable collateral for a loan, and it turns out one of the best things is to have a binding off-take agreement.
https://globaltradefunding.com/project-finance/project-finance-documents/offtake-agreements/



Our offtake agreement with Piedmont is for 50% of Authier's spodumene for 14 years. Our DFS calls for 114,000 tones per year. with a minimum of $500 and up to $900 per ton.

Doing a bit of math shows us we have a minimum of ((114,000 / 2 ) * $500) * 14 = $399M to use as collateral, and this could be repeated if we also have an off-take agreement for NAL. (via Tesla) That is a massive $800M for only 1/2 of our Spod. In addition we can avail ourselves of some of the IQ $$ to keep the costs lower.

I believe the Piedmont contract being written for 14 years was done to create a large sum of collateral ( larger than is needed for NAL purchase, so it will be interesting to see if the deal will be in fact much larger and encompass other assets like Jourdan.

I hope this helps everyone understand how we can actually get from point A to Point B.