Ann: Lepidico Corporate Update - IMARC, Sydney, page-31

Strategic partner process managed by Jefferies continues with multiple parties engaged

The outcome could be interesting, the general assumption is that a strategic/ cornerstone investor takes a stake in the Company and that cash injection becomes part of the overall
finance package. The result is dilution through issuing of shares.

However there is another path and that is a strategic partner taking a stake in the Project and that results in a dilution in Working interest.

LPD is fortunate that it has a 100% ownership ( 90% of Karibib) so has scope to reduce WI and still hold a strong ownership. IMO a stake in the project would raise considerably more cash than someone buying shares at market value. It also reduces risk and reduces our construction costs.
In some cases its dealt with by a free carry to production. For example you give me X % of the business and I'll build the the conversion plant...

With the DFC likely to cover the concentrate side of the business it just leaves the conversion side to be funded.

The original DFS had the conversion plant cost, including contingencies, of around $US 100m , thats likely to be at least $US 120m by now or around $A 170m, so a bit cash involved.

Anyway at some stage we will find out how they plan to do it...my personal preference is for a reduction in WI ( no more than 30%), there is plenty of scope for increased production and 70% of a project producing say 20,000 tpa and potentially growing is considerably better than 100% of 5000tpa, we may need a committed partners help anyway...

Cheers Whisky