BMW invests in Lilac Solutions, page-97

Hi Chris2184,

Just to expand on a point that you have made....

Yes, the $50M earn in for Lilac is based on a number of pre-conditions that haven't happened as yet - but the $50M payment is by no means the total of the "cost" of the earn in for Lilac. They are providing far more than the $50M in equity. If you re-visit the Red Cloud Webinar, both Stu Crow and David Snydacker explain this in more depth at around the 34min mark. Stu states "They are earning in by delivering their experience and expertise with their technology as a starting point. They are contributing $50M to part of the equity component of the project finance." David then states "From the Lilac standpoint, we're bringing technology and operations teams and raising corporate equity on the Lilac side to ramp up the technology, ramp up the teams, get that (demonstration plant) delivered on site - so the funding is only a piece of the earn in as Stu said."

David actually also stated that their contribution towards their earn in was starting the very next day - with more work on the Demonstration Plant.

Lilac are putting together the Demonstration Plant and will deliver it to site. They will have teams in place, on-site at Kachi to run through all of the assembly, testing and commissioning of that gear to prove production at scale. They have also committed to have teams in place, on-site at Kachi to run the DLE plant for the life of the project.

The above was previously pointed out to another regular poster here that thought that the $50M for 25% equity in the Kachi project therefore valued the Kachi project at only $200M.....which is obviously not the case.

In a nutshell, Lilac's contribution to their earn in has already begun and they have expended (and will continue to expend) costs outside of that $50M through their ongoing work on the Kachi project. Those current and future costs that are being borne by Lilac are coming from the funds raised previously by Lilac - part of which has been contributed to by the likes of those Companies mentioned in previous posts. Whilst I agree to some extent that the specific intent of those Companies may not have been to fund Lake, those Companies are invested in an outcome of which Lake is a vital part. So the announcement of their involvement with Lilac is a very positive piece of news for both Lilac and Lake......as well as CTR and any other party that Lilac is currently working with - but, at this point, probably more so Lake than the others due to the depth of the partnership outlined by their earn in agreement.

I don't wish to argue the point, but I think that there is more to the discussion than what has been posted thus far and I believe the above helps fill in some of the blanks.