Ann: US$20m debt facility to complete the Lindi Jumbo Project, page-42

Hi SweatEquity,

Did you read a different ASX announcement from the one that was released this morning?

WKT has signed a Conditional Term sheet with a company that hasn't been specified, We have seen the number of companies that have completed their DD and have not provided any funding to WKT, CRDB is the most recent example,

Do you understand the interest rate is yet to be disclosed?

The term of the loan is for 3 years with interest to be set at secured overnight financing rates (SOFR), currently 4.5% plus a high yield margin to be settled at the end of the due diligence.

This shows the Conditional Term Sheet is only just starting the assessment process where the funding is not as certain as you allude.

You only need to look at how desperate the company is to secure funding. The shareholder's and directors' Bridging loan are being offered 17% interest, then we have BMCG's giveaway of $1-1.2mil in free shares to provide backup funding.

Your reference to the US$2.5mil is also incorrect, we had @Stirer and @Croc-file advising WKT only needed US$2.5mil after the company announced the deals with TNR, Jinpeng, BMCG and the Shareholder and Director loans, Which is incorrect as today announced detailed WKT needs US$20mil and have the option to draw US$25mil.

I can fully understand why the SP has significantly increased on this announcement, Its highly likely this agreement won't progress pass the assessment process or the interest rate being offered may be unrealistic for WKT to agree too.