Ann: Development Progress - Lindi Jumbo Mine, page-5959

I disagree Stirer. I agree with Spid in relation to the second Gemcorp loan of US$5 million (incremental). Essentially Gemcorp have loaned Walkabout US$25 million at credit card rates, however, Walkabout are only allowed to spend US$20 million on building and operating the project. The incremental US$5 million loan is soley to cover loan repayments on the principal when due at the beginning of October. That is my opinion and the company has not announced anything thus far to dispel that view.

These "sales" you refer to are only samples until the company announces otherwise. What will Walkabout do if there is a significant time lag between end users receiving there paid for samples and larger commercial orders? How much storage capacity does Walkabout have access to and how much will it cost? I shouldn't imagine it can be stored outdoors. Until customers comit to commercial orders, Wogan aren't going to take it off your hands. The market is in oversupply for "large" flake. There is a risk that the company will have to suspend operations as has been the case for Syrah Resources at Balama.