Those kind of remarks demonstrate a fundamental lack of insight...

Those kind of remarks demonstrate a fundamental lack of insight to debt and quasi-debt funding to corporations. No business can borrow funds from a financial institution or indeed an investing institution providing literally hundreds of millions of dollars, on a hand shake as you are implying. I have been directly involved in numerous corporate funding transactions of these dimensions in an earlier time in my life and any provider will negotiate terms that give some comfort to them as lender/investor in the quasi-equity case.

As I have stated on these threads before, Ford already took security over the assets of Kathleen Valley subsidiary (owner of the mine) when it was just a piece of first nations dirt, and they were providing $300m in development funding on extremely attractive terms. LTR management has wisely kept that facility on foot throughout, and even now it retains a 5 year term which started upon first shipment (from memory). When new financing (again on extremely attractive terms) was to be provided by LGES, they required something by way of comfort and that is a probably a second charge over Kathleen Valley (behind Ford) as well as other unencumbered assets. It is simply normal business practice and as I stated in earlier posts, the terms are so attractive relative to the bank financing alternatives, it was the way to go. Regarding terms, the fact is that there are no complex and potentially inimical covenants associated with the LGES funding, and to a borrower like LTR in a nascent industry, that is GOLD!

If you doubt my comments, feel free to talk to a project lender...they will repeat similar comments. So enough of the BS!

Regards
DF