Phew, over the line at last! Finally we get to see the details...

Phew, over the line at last!

Finally we get to see the details of the JV agreement and the one thing that stands out is that the EFR contribution is initially a secured, interest free loan that will fund the JV activities until the 'Conditions Precedent' (which don't look too onerous, though FIRB approval may take some time?) are met, after which 'Completion' is declared, which releases up to $16m in total funding until FID is declared, scheduled for 4Q/2024.

It looks like quite a bit of the pre-FID funding will be used to bring the DFS up to NI 43-101 compliance, which is a lot higher level than JORC from my understanding, so not a bad thing.

Post Completion, EFR will 'earn/farm in' up to 49% of the Donald Project JV on a proportional basis up to A$183m of total equity funding, after which any additional equity requirements will be funded by the partners on a pro-rata basis.

The US$17.5m total in EFI shares will be issued to ATR, $3m after Completion and the balance of $12.5m on declaration of FID. There is no mention of an escrow on sale of the shares so this will improve ATR capital position even if they chose to hold on to them.

Of note is that the land currently owned by ATR in the project area will not be transferred to the JV but will be leased for the duration of the operations with the JV responsible for all outgoings, rates and taxes.

It all looks to be fair and reasonable from an ATR perspective, the next big hurdle will be to arrange financing, hopefully through a mix of AUS/US government funding packages with a commercial syndicated loan to complete requirements.

We will need to see the next quarterly cash flow report to see how ATR is tracking financially, hopefully they have sorted out the feedstock issues at the Yingkou MSP and are cashflow positive there, which would take pressure to raise more capital to fund ongoing activities. Maybe even Blue Ocean will convert their loan as a show of support for the JV agreement?...we live in hope! GLTAH!!