So basically once they execute the definitive JV at the end of September SQC will advance KDR a loan of ~A$28 million in the form of a convertible bond until which time conditions precedence are met.
Seems like a pretty good result for the company as the total monies that SQC are obliged spend to fully fund the project are in line with my estimates of the amount needed for the starter pit at A$146.67 million.
I'll still wait for the DFS before looking at the company again. It is positive that SQC see a future in it for sure but they can't know the outcomes of the studies yet as they are not complete.
Not sure about the long term implications of the marketing arrangements either but shareholders couldn't have asked for much more than this deal. If it is concluded and the mine stacks up this will be the basis for long term wealth creation. I'm surprised at the reaction in the market.Esh
KDR Price at posting:
62.5¢ Sentiment: None Disclosure: Not Held
