Ann: Positive Pre-Feasibility Study for Mayoko-Moussondji, page-4

Hi phogg,

Good point re possibly being able to ship to Europe. That $12-13p/t shipping saving could be critical if IO lingers around the $74p/t level as used in the study.

A strategic partner able to either sell into Europe, or that has European mills, might make it interesting. Having a low production profile may actually be of benefit in accessing European markets, as IMO the company may have an easier time finding a home for 2.5mtpa rather than 30-40mtpa.

Next on the list is the Mining Convention and associated infrastructure commercial agreements.

I agree that finding a partner with IO in the low 70's is going to be tough. The company may find itself in the position of needing to ride out this shake out, which it has the ability to do considering the cash at bank and very low cash burn.

Re a strategic partner possibly buying 50%, IMO that'll be the strategy. I can't see how else it would be funded in this market.

If a strategic partner takes on 50%, they also take on 50% of the CAPEX. This would leave EQX with having to find $90m from cash at bank, consideration received from the new partner for their 50% stake in the project, & debt/equity.

Good luck!