I agree that should the SA loan fail at the DD stage, that's a red flag. This is all just my observations, but as for the likelihood of MNB's SA loan application of US$14mill failing, I would put it on a maybe mid-to-low chance occurring. The IDC conducted a site visit last week, and no doubt saw all the plant equipment at the site and/or in storage and the site clearing + perimeter fencing so there's actual work being done and isn't some ghost project that came out of the blue, so I'm betting they are satisfied with the site visit.
For anyone who is interested in how long the IDC's DD process takes , it's ~45 working days on average and then if everything checks out, then another ~8 days to finalize agreements. So worst case scenario, if the IDC agrees to the loan application, we should see this finalized before end of the year, by then we should hopefully get more funding news for the remaining US$12 million. There is a possibility that the DD stage could be shorter than 45 days, but I'll lean on the side of IDC taking up the full 45 working days.
Just looking at the dot points in the DD sections, it's hard for me to imagine MNB failing at this step considering they have all the environmental + relevant permits granted by the Angolan government to conduct site work, but lets hope the IDC doesn't find something that would cause the application to fail.
MNB Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
