Demerger process, page-7

One thing for sure, Lithium Co cannot start out on day 1 with no cash.

They have a few avenues available

1 By the time it's demerged we'll well and truly be into mining the satellites, 70-90k oz pa, so it would easily be affordable to give them say $10m. This is what ALK/ASM did

2 Our partner will have to pay for their % of Lithium Co. Hopefully enough to fund the project, possibly with the contingency part of the US$194m cash in the bank

3 As part of the demerging process, and part of the IPO, they could do a SPP available to Lithium Co holders. This is what WGX/CST did

The whole point of this demerger is to create value for FFX shareholders. The best way to create value is to develop it, not have it sitting on the shelf. So Doc will want to see a clear path to development with any deal that is done. We could possibly debt finance a small portion of it, however no where near the US$194m that is required. FFX will be a separate company and could not for example guarantee a loan thru gold hedging, Lithium Co will not have the asset backing to get a big loan, that is why a partnership is so important. And don't count out a complete sale.