Ann: Muchea Mining Lease Application, page-15

Paydirt17,

We have had a fair bit of speculation re the establishment costs over the year. Some possibilities are:

Rail connection - rail company provide it free based on future earnings from siding

Port already established (Arrowsmith)

Plant - Lease from manufacturer

Plant - Get bankable sales and borrow money from banks on short term. The costs of around $15m have been mooted so this could be paid off in pretty short order.

Customer finance - if they want it bad enough, they may cough up to establish the mine and take payment in sand until the slate is clean.

CR - Possibly, but it would probably be better for some form of credit as above to be sourced rather than dilute at what we all believe is a current SP way below the fully valued future price will be.

Would the state government chip in for any infrastructure such as power and water connections?

Alternative to all above is to sign up a contract miner to dig and ship and let them bear the establishment costs.

 

Anybody with industry experience able to comment on the viability of the above options - it's certainly something that I know nothing about.

Keith..