ATL has been testing our product. Imo it would be fair to say...

ATL has been testing our product.
Imo it would be fair to say that they probably know our current product better than any other third party.
The fact that they have also just invested USD$5million into our company speaks very loudly imo about their confidence in the future growth and success of our company.

IMO that figure (USD$5M) seems about the right amount from this point to get the current plant significantly ramped and realising revenue from an offtake.
I wouldn’t be at all surprised if it went down something along these lines:

ATL: Your product seems great so far; initial testing shows the impurities are within spec… while we complete our qualification process, how do we ensure that you can deliver, if/when our boxes are all ticked?

AGY: We probably need some funding to get the plant humming along and ramped to +50% of capacity, and to ensure we can fund the opex for initial order quantities. We have about USD$5M in the kitty and reckon about double that should see us through to consistent supply quantities at decent scale. We could do an equity deal but want to minimise it at this stage to minimise dilution.

ATL: Great, we’ll provide the 5 mil and get the qualification finished, so we can get an offtake in place.

AGY: Copy that, but there’ll be no discount; actually you’ll have to pay a bit more than recent vwap.

ATL: No problem, the money is on its way.



….Just my musings for a Tuesday morning.


Imo
Dyor