This was ALWAYS going to be done as debt financing. They have...

This was ALWAYS going to be done as debt financing. They have said as much all along.

If they did a share placement you would all be complaining about dilution.

This is a great deal I think. Yes we don't know what the 50% offtake price to Noble is, but we have a guaranteed buyer for 50% of the production. That is essentially a hedge to ensure that money flows in to the business over that period of time. It provides certainty of income, something we have not had until this point.

We then have a very experienced partner ("Noble is ranked number 76 in the 2013 Fortune Global 500") marketing the remaining 50% into buyers at a 2.5% commission. Experience worth paying for in my view. It will keep overheads down, we don't have to employ someone to do this for us - we can remain VERY lean.

The loan amounts need to be repaid within 2 years from the initial drawdown. Do you really think we would be entering into these agreements if we were not supremely confident of being able to pay these amounts back? Really???

So within 2 years of taking the money the cash is paid back, as opposed to the permanent dilution for all eternity if this was done as a placement. From then forward everything is profit.

This will also provide cashflow and funds to enable development of the leases in other states. It specifically says that this deal applies ONLY to Tasmania. Who is to say that the Tassie mines don't produce enough money to not even require loans to develop the other assets? At the very worst it will enable us to negotiate better deals for these assets going forward.

This is a great deal. The sellers are traders for mine.

I will be holding in one account and taking a position in my SMSF with a view to holding this for years to come.

GLTA