Quarterly Activity Highlights: US$560,000 spent during the last...

Quarterly Activity Highlights:
US$560,000 spent during the last quarter.
US$240,000 left in the kitty
US$200,000 of outgoings forecast for next Quarter
No funding opportunities progressed until debt conversion is completed
Debt conversion negotiations ongoing since 6 months ago (July) and now complicated by Platinum Partners liquidation.

When will these debt negotiations be completed?

Answer: Unknown.

Question: Will they be finalised before CKA runs out of money, given it is forecast to have about US$40,000 left in the kitty by March 31st?

And what did Cokal have to say recently about the debt negotiations?

Answer: "The Company now expects there will be material delay to finalisation and implementation of the agreement" - ASX release 21 Dec-16.

Another question: What comes first - the chicken or the egg?

In other words Cokal states "No definitive proposal has been finalised as yet and all proposals will require a finalisation of the Platinum debt to royalty conversion" (see Qtrly, page 11)".

And will not Platinum (and its liquidators ) want to have some firm sense of assurance that a finance proposal does and will exist - and will progress - otherwise it's 1% royalty is effectively 1% of nothing without the project financed, up and running.

So:

* The prospective financiers will want to see confirmation that the Platinum debt will be extinguished before kicking in the cash.

* Platinum will want to see that financing is a done deal to ensure they can monetise the 1% royalty.

In other words - clearly a lot of negotiation between all the parties - Platinum, The future financier & Cokal - will need to take place.

And how long will that take?

You would hate to think it is going to drag on too much longer given that Cokal has burned through a further US$1,214,000 in just the six months since 1st July 2016 (just before debt conversion proposal was first muted).

The company had US$324,000 on 1st July, spent US$1.214m in six months and had to rely on diluting shareholders by issuing almost 20m more shares at 1.6c to keep the company running (see placement 8th August 2016).

The clock is ticking to get these negotiations finalised because - come March 31st - Cokal's own Cash Flow statement projects that it will only have US$40,000 left in the bank.

The Platinum debt currently sits at US$10,065,000.

Coop