Ann: Galan Secures Glencore Agreement For Offtake & Financing, page-236

I've reflected on this deal, and while we still need to see details e.g offtake pricing, terms and need to finalise capital facility, all of this is par for course in offtake finance arrangement and will take several months to finalise and sort out.

This is an outstanding win for a junior. Looks like I have underestimated JP and the team

@acwbagnall it's not a lump sum upfront to pay for CAPEX, separate from OPEX. I think the way it works is that Glencore will take 5 years of 5.4ktpa, which then underwrites a capital facility, which Galan will pay down with revenue from Glencore as that revenue comes in. Like a home loan, some goes to working expenses, some goes to interest, and the remainder goes to paying down the principal/or keeping working capital.

We've now commenced construction and paid for long lead time items, so its likely we've shaved some off the Capex already. In which case our required capital facility will be smaller.

I take comfort that Glencore will either provide or help facilitate any facility. This optionality should given Galan some leverage in negotiating rates, as we aren't beholden to one provider. Having Glencore facilitate gives me much more confidence than Graeme Fox.

My main fear was Galan taking on predatory debt without the offtake secured. This fear has now been allayed; with Glencore taking our product, we will have more and better options than without offtake.

This is the best deal possible: we have a global major validating our product and project, yet we still have 100% project ownership, still with room for involving other. And we're only tied to 5 years at 5.4ktpa with lots of pricing and volume upside.

This market is being driven by traders not value investors, so I wouldn't be reading anything into the gyrations. Even the big banks are trading and shorting like punters - @HOOPZ can show you the broker data - UBS is the worst offender. They love hitting your stop losses and triggering a cascade in sales - they'll be laughing into their soy lattes at all the muppets gyrating hourly from "JP is a hero... $10 here we come" to "JP needs to be sacked.. sell while you still can"