Ann: Urea Manufacturing Facility Binding Heads of Agreement, page-72

It appears, as per the Scope of Work diagram and wording, DL E&C will be doing a lot of the heavy lifting in the “finance sourcing side”. I note that it has LCK as assisting (not vice versa, only musing here, but reading between the lines).

Financing avenues would have been discussed, as I doubt they’re just throwing sticks into the wind and hoping that they’ll fund a plant.

The reiteration of 100% ownership is incredibly positive ... but people suggesting dilution as an imminent likelihood via equity (vs debt), to explain “well why would they bother if they’re not going to get anything out of it ?”

Id say the contract for construction is an incredibly huge carrot, so there is the incentive to make it happen IMO.
Financial institutions usually just take their interest.

Using Korean financial institutions for funding..... one would assume that DL E&C would have a pretty good standing with them, given their long history.

One could assume that DL E&C have won over LCK not only with their expertise in the construction side, but their ability to use their name and standing to get access to financing (“corporate capability”). Throw in the other recent HOA’s and potential offtakes.

I think this will be a very favourable outcome for shareholders, ... but we’ll see.

All IMO, my ramblings are not financial advice.


Cheyne