Shareholders, particularly T40 have advised their Shareholder representative, Non-Executive Director Mike Elliott (2nd largest share holder) and Global Mining Expert of what they will and won't accept out of a funding deal. If these parameters weren't suitable, then the options wouldn't be considered and progressed by the board.
Given the initial payback period for the Lindi project was less than 2 years, and the loan notes have a 5 year term, I am extremely confident that there is plenty of buffer there for any event which as you suggest may result in a conversion of the debt to equity.
If it was a 2 year note with a 18 month payback period, I would be concerned.
Your thoughts regarding "fire sale" values and reserve sizes also highlight your lack of understanding of defaulting and insolvency events. If a reserve is uneconomical to mine yet has a huge reserve, it still won't be worth much in a fire sale.
Rest assured though, if you have one of the highest TGC's and high large flake distribution this won't be an issue. The project will be economically viable AND there will not be a fire sale.
"All the best" - we already have the best @Names little. You can also buy some of the best on market at 31c at the moment.
WKT Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
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