Ann: Expiry of BMCG funding facility, page-84

Hi @dan_stewart83

Please explain to everyone how the termination of the backup funding is in the best interest of shareholders when the project has yet to get into commercial production.

We have already established BMCG was paid ~$1.2mil in shares to provide funding for up to 2 years, yet it expired after the first anniversary. WKT did not disclose to shareholders if there were any additional fees or charges associated with BMCG providing the US$9.3mil available for the next 12 months.
If there are no costs associated, Why would you agree to terminate the agreement, the BMCG facility provided WKT fast access to cash, and the shares were always being issued with a 14% discount to the 5-day VWAP. this should be less dilutive than the capital raisings if WKT is required.

I would like confirmation from WKT on their current debt and debt servicing requirements for the Gemcorp loan. It states that WKT needs to have 2 QTR of debt servicing at all times. Is WKT allowed to borrow the funds from Gemcorp to provide the cash for the debt servicing?

The agreement also states the funds from the facility are available until March 2024. What happens after March?



The other point I should raise, WKT has been able to draw on Gemcrops Trench 1, we know one of the conditions subsequent to the loan facility was for the loan to be registered with the Bank of Tanzania, has this occurred, or is WKT still asking Gemcorp for their permission to provide funds as detailed in last years prospectus. What happens if there is an issue with drawing on the loan if this condition is yet to be rectified? The back up funding is no longer available.




There might not be any issues with the Gemcorps loan facility, but WKT is yet to produce one kg of graphite concentrate or complete commissioning.

WKT has also stated that they expect the plant to hit nameplate capacity within the next 4 months (after commissioning is completed), based on the IIR reports OPEX figures, this should cost around US$4.2mil per QTR. We have the known bottleneck of the Tanzania port where it is taking 2 months for shipments to arrive or leave, which means any samples sent for testing and third-party validation is going to take 3-4 months before the validation can be achieved, then another 1-2 months before the first commercial shipment can be sent to these customers, (I.e when Wogen's working capital facility is available)

I think it is way too early to start agreeing to cancelling backup funding arrangements with this much uncertainty, but that is my view, no doubt you have a different one and I am looking forward to you explaining how you think the termination of these funds is in the best interest of shareholders.