Ann: Shenzhen Review to Include Ancuabe, page-24

Could just be canny negotiation tactic to delay. In 6 months time, the company will likely be in a weaker financial position and it may be easier to (re-)negotiate terms of the agreement.

There may likely be some short-term hurt in the SP movement - and I'm sure ALL holders were looking forward to the LOI being signed, as it delivers certainty around financing, which de-risks TON further.

However, this does not change anything fundamentally about the company - they still have the original signed $20Bn offtake, and are still racing towards production. The YXGC deal alone values TON higher than reflected in the current SP.

The only real concern from this announcement is any impact on time to production and even more importantly cashflow. These are the critical considerations.

This extension is for UP TO an additional 6 months - so may not take that long, but we should allow for potential for it to be up until 31st December 2015.


They just raised $12M. Based on their current burn rate, will they need more cash before the LOI is signed? Should we expect another CR in the short-term?


Good time to top up.