re: Ann: China Development Bank - Financing L... This is where...

re: Ann: China Development Bank - Financing L... This is where the value of ECE begins to show itself.

Yes, in order to raise over $40m GBE had to relinquish some control, and dilute the shareholder base. But by doing so they derisked the company in many ways.

Now, there is clearly a path by which Kanyika can be financed. Many, many small miners simply cannot get their projects financed. And if they can, it involves a large dilution of the shares, often at a severe discount to the prevailing price.

GBE has:

- a large and valuable project in an in-demand and tight commodity. TICK
- growing secondary project, one of the best REE projects in Africa. TICK
- ample cash to fund ongoing activities, including exploration and the buyback. TICK
- cornerstone Chinese investor opening finance and offtake doors. TICK.
- Now, a letter of intent from a Chinese bank for what is a VERY large amount of finance. TICK.
- Yet to be announced OFFTAKE deal with a Chinese steel mill. This is the other key part of the project.

IMO, if there is any dilution associated with the Chinese finance, it is likely to be in the form of ownership of part of the project itself, not at the company level. Further increases in Chinese ownership at the company level is too problematic with the FIRB. A Chinese steel mill will want to have some say and ownership at the project level.

Apart from the low share price, these are all the milestones a small company needs to achieve.

Yaq

For those unfamiliar with share buybacks, we are in a blackout period. So, OF COURSE the MD wasn't selling shares into the buyback.