mou in victoria, page-20

Shatskaya - “it ran for about 17 years” It was supposed to run for 70 years.

“On the terms of the JV – I was going off the reverse takeover doc p19.”

The entire paragraph states:
“(vii) Once Cougar has achieved a joint venture interest in any of the projects, Metallica has the right to contribute to expenditure, be diluted or retain a carried interest.

The remaining terms of the joint venture arrangements (including the proposed structure, management, termination and exit provisions) are to be finalised on terms that are consistent with industry practice with formal joint venture documentation to be entered into on or before 16 May 2007.”

It is now September.

My interpretation of “retain a carried interest” is that CXY provides all the capex and builds the plant while MLM takes 30% of the cash in return for CXY using MLM’s coal. Therefore, CXY needs to raise $22 million through capital raisings while taking on $33 million in debt, assuming the bank is willing to lend them the money.

“if Kingaroy was to do similar it can be powering the proposed 40MWe in the meantime!”

Now, if you want to talk about risk, imagine committing $55 million dollars to a 40MW power station and then finding out that the burn won’t be successful. I would suggest they will be flaring the gas for a while until they can establish that first.

“You’ve seen my list of what I don’t like about Linc, much of which boils down to doubting their business capabilities. Whilst Cougar looks like steady progress towards the goal.”

I reckon LNC will have their demonstration plant up and running long before CXY has started their trial burn.