eh, Epanko about to be spun out. This is someone getting a...

eh, Epanko about to be spun out. This is someone getting a planning permit for a big house before selling off the land with an old house on it.

It shows EGR has given up getting debt financing for Epanko. Why? Debt financing for the lender is all about managing risk, there's no extra upside lending money, not losing money is very very important and the criteria against which projects are assessed. Unless debt is structured with convertible notes in which case not much different to equity, it's all about de-risking as a borrower. Yet here EGR is going down the path of increasing the project risk by going after a possibly bigger package on paper. Doubt current holders are willing to fund the extra paper work. And no you cannot use your cash in the bank reserved for the development of Kwinana on this - typically funds raised for a particular purpose can't be used to pay for strippers willy-nilly with any pretense of corporate governance. Cap raise to fund more studies is not going to be palatable, so out Epanko goes.