Lindi Jumbo will draw as necessary against the senior lender Tranche B standby facility (refer ASX announcement dated 29/3/23). A
draw of US$2m occurred last week with smaller draws also likely during July and August.
The senior debt lender has agreed to extend the grace period of the loan a further 6 months to 31 December
2024 and final repayment date to 31 December 2026 (subject to certain conditions). The Company has
committed to a future injection of a minimum of US$2m to Lindi Jumbo to bolster project cashflows and the
senior debt lender will now be entitled to cash sweeps above US$3m, reduced from US$5m to reduce debt.
The Company now has the option to acquire the senior lenders share of free cashflow after debt servicing for
US$5m if settled before 30 June 2026.
The Company is seeking approval for a bank overdraft with a local Tanzanian bank once first pilot sales
Only last week, I was making claims that WKT would need to raise additional funds, yet I was told by the WKT promoters these claims were unsubstantiated and that WKT still hasn't drawn down on Gemcorps US$5mil Trench B, This above extract confirms my claims that a CR is required and proves these posters were misleading HC readers.
"A draw of US$2m occurred last week with smaller draws also likely during July and August."
"The Company has committed to a future injection of a minimum of US$2m"
"The senior debt lender has agreed to extend the grace period of the loan a further 6 months to 31 December 2024"
WKT's previous statements regarding the first debt repayment being due at the end of September. Had WKT already been provided a 3-month grace period extension and now Gemcorp has agreed to extend this grace period for an additional 3 months (6 months combined)?
When does WKT need to have the 2 QTR's of Debt servicing (at all times) in a separate bank account?
I thought the US$5mil backup funding would have covered this the 2 QTR requirement, but WKT has already drawn down US$2mil last week, and the announcement also stated WKT intends to drawdown additional funds in July (this month) and August. Does this mean in September the funds will be completely exhausted from the US$5mil facility?
WKT did mention "monthly costs of the mine are expected to be approximately US$1.4-1.5m" Which would use up the remaining US$3mil from Gemcorps facility
I look forward to seeing the details of the Minimum US$2mil WKT intends to raise. Looking at the volume being traded so far today, this announcement has not sparked any interest with only 167k shares traded on the ASX.
BTW, does anyone know why BMCG's facilities were removed?
I do recall reading the following from the December QTR report.
"No further draws under the BMCG facility are expected" 5 months later WKT requires a minimum of US$2mil
Less than a month later WKT provided the following advising "the company having elected to initiate any further funding under the facility"
Anyway, it is great to see the comments I made 5-6 months ago to keep the facility open would have been prudent. Has turned out to be another positive call.
@SpareCash7 @sirrobbo @Stirer @Red Adair Are there any other comments I have made that I have forgotten to address? Today's announcements has substantiated many of my previous posts. Amazingly, you claim I am always 100% wrong on my assessments, yet when WKT provides the updates I am 100% correct.
