This is basically betting the future of the company on the Komatsu MC-51 - note that the performance criteria for production rate or rate of advance are not specified:
Details of the grant funding• The grant is awarded in two tranches in arrears and based on the achievement of milestones. The first tranche is $800,000at the completion of the portal, initial decline and first corner, and a second tranche of up to $1,200,000at the conclusion of the trial.•In recognition of the commercial benefit to the Company, Hillgrove has agreed to repay half of the grant proceeds received via a 0.25% royalty on concentrate sales if the trial is deemed successful.Success is measured by the machine demonstrating a range of technical requirements and meeting a minimum production rate over at least 350m of decline development, and the subsequent development and production from the Kanmantoo underground mine.Repayment of half of grant proceeds commences12 months after first copper sales from the Kanmantoo Underground.
My question is what would be the "Plan B" if the MC-51 does not perform or has other issues as to completing the decline? Remember - this isnt cutting a nice level road tunnel tunnel through Sydney sandstone or Brisbane Mudstone - this is real mining now,
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