question to the intec q and a forum, page-19

Ron,

"I also went out on a limb with a suggestion, namely forward-selling the precious metals as loan-collateral"

In my opinion, forward-selling production for a new project, yet to be built, applying new technology can be extremely dangerous for a small company. Project delays in construction or problems encountered in the ramp up can cause a company to be in default of those forward sales which can result in the company been placed in receivership/administration. A company really needs back up cash flows or pre organised alternative funding arrangements to go down this path.

I think INL's only option is an equity partner/partners who get a stake in the project for the additional benefit of perhaps an offtake for the projects output. Example 100% funding for 50% equity stake such as negotiated by Compass Resources with Hunan Nonferrous Metals Corporation for the Browns Sulphide joint venture.

Regards

SP