Ann: Quarterly Activities Report, page-624

Hi Newbietrader,

the only way this will be fully funded is if the company successfully raises the $33mil, plus they need working capital (see below)

If it is anything less than US$33mil, WKT still needs to rely on either the Tanzania bank funding, which has been very difficult to obtain or shareholders will need to find more funds to complete the project.


WORKING CAPITAL

The major requirement for working capital funding will occur from the start of operational readiness through
production ramp up to positive cashflow which is expected to be a period of 3-6 months. As the company has previously
disclosed, it has access to US$3.2m in a working capital facility from Wogen Pacific Limited (“Wogen”) with the
opportunity to expand this to a US$8m facility. This will be available once product is loaded onto a ship. Prior to that
working capital will be required to be funded via a bank overdraft. Lindi Jumbo has been approached by a number of
banks interested in providing such a facility. The bank overdraft facility will be finalised after the final project
development capital structure is known.

I did mention earlier the Wogen working capital wouldn't be available until after the mine is producing at the rate of 15ktpa, but the positive posters were claiming the US$8mil facility was available from day one.
Basically, WKT needs $33.17mil to finish the project then they need another US$3.2mil ($4.64Mil) for the first 3-6 months until the funds from Wogen arrive. Technically WKT needs around $38 mil of funds to get the mine into production

WKT might need to repay BMCG the US$2.95mil ($4.28mil AUD) of convertible equity, which would put up the total amount WKT needs to raise to $42mil.