Ann: Development Progress - Lindi Jumbo Mine, page-2164

Good Morning Sparecash

Highlighted below is the expenditure WKT forecast for the Gemcorp US$20mil facility,



You can see there was only a contingency of US$400k and WKT expected to spend all of the funds

I am fairly certain WKT announced additional costs associated with the project after this announcement, i.e the US$1mil for back up generators, plus we have other factors at play like the cost associated with the plant being 2-3 months behind schedule. As you know WKT did forecast to be generating income by January, yet the plant is still being constructed and commissioning hasn't be completed, the tailings dam is also yet to obtain approval and we are yet to see WKT secure its FCI with the government of Tanzania or obtain an export license.

Do you think the US$5mil will be available to WKT if the first loan is yet to be registered with the Bank of Tanzania?

I also appreciate your bullish stance that the company will be relying 100% on bank loans rather than raising funds from shareholders, wouldn't a CR at 11 cents be better than another heavily discounted capital raising due to failures at the processing facility or a breakdown?
You can see by the long delays on shipping, that if anything breaks (that WKT doesn't have as a spare) it will take 3 months to arrive on site.

Anyway, I am glad you agree that BMCG's US$9.3mil of remaining equity is unlikely to be an option, with the lack of liquidity I cannot see BMCG agreeing to provide WKT any additional funds, it has taken them 1 month just to reduce their holding by 2mil shares.