This non-binding term-sheet is not a good outcome. KP2 has been...

This non-binding term-sheet is not a good outcome. KP2 has been negotiating with Summit for a term-sheet for ages. Now out of nowhere they sign a non-binding term-sheet with subsidiary of Record a UK listed fx hedging firm with a £100m market cap. Record has no history of doing any large size debt & royalty funding deals in the mineral space.

I think the Summit deal failed and the KP2 management was desperate to come up with anything. What they came up with is not even worth the paper its written on.

The language in this RNS is so thin it’s a joke “indicated its intention” which basically means that OWI-RAMS has committed to nothing.

“Pursuant to the non-binding Term Sheets, OWI-RAMS has indicated its intention to arrange and then provide a funding package for the Kola Project, amounting to approximately US$2.2 billion, through a blend of senior secured project finance and royalty financing.”