ASX Perth office given them a good looking over which obviously...

ASX Perth office given them a good looking over which obviously necessitated the raise. Shame as we sound like we are close to a deal but one more raise required to keep ASX happy.

However the responses to this letter do provide a few details that reveal a bit more than we might have known.

Firstly, it seems rather than just identifying that similar projects are fetching attractive prices (average of recent sales seems to be $210K/MW), it would appear KPO already in direct discussions with buyers. Do they have a indicative offer/term sheet yet? We simply don't know, but it does sound like they are in advanced discussions with buyers and a site sale would completely fix our balance sheet. One 170MW site at $210MW is about $40M AUD.


Secondly, it seems following the Framework Agreement they are in the final stage of negotiating at least one but possibly all of the project development agreements which release ~$15M in project security payments.

Thirdly, it appears they have been in advanced discussions with debt and equity funders for the actual construction projects and as a sweetner to be awarded the huge debt finance deal for up to 12 $1Billion CAPEX projects, they are prepared to support the funding of the FEED studies. Terms already offered by one party are commercially attractive, but they are still putting their consortium together. My guess is it will be associated with the equipment suppliers like Mitsubishi, GE, Siemens etc.


Whilst we are still a minnow, it always amazes me at the deals the current management are pullling together behind the scenes and the players they are doing it with. At some stage, one domino will fall (my guess either a site sale or the Crusoe PDAs) and their balance sheet will be restored and have the freedom to smash this thing out of the park.