QPM 5.56% 3.4¢ queensland pacific metals limited

Ann: TECH Project Approvals, page-109

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  1. 1,099 Posts.
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    It's actually quite straight forward, but NO there is no way you part finance hoping you can get further finance as the build processes. Does not work that way.

    It is correct that not all the money is needed at the beginning, so what happens is the entire finance 'package' is agreed at FID, to complete the entire project, and is released in tranches as needed.

    This can be because a lead bank has the money kinda in 'trust' or more than likely each lender releases money at stages in the build as dictated by the terms of the contract.

    This is why syndicated loans work well, with a lead lender controlling the purse strings.

    Very common structure and I have been involved in many myself. Hope that answers your question. DYOR
 
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