company email on $90 mil offtake

In terms of funding, assuming no further substantial delays, our current cash balance is sufficient to take us into production. We then have options to secure finance from offtake agreements (US$90 million), and to either defer project spending or access finance facilities for particular items of infrastructure. Referring to the capital cost estimates in our December Investor Update, Phase 3 to take us to production is budgeted at NZ$35.6 million however this includes $5.2 million for the stage 1 port upgrade which has already been accounted for, $10.8 million for a water treatment plant which can be financed under a Build Own Operate Transfer option, $4.8 million for a rail spur which can be deferred until Phase 4 and $5 million for land acquisition for the stockpile site which won’t fall due until Overseas Investment Office approval is received later this year. Our cash at September 30, 2012 was AUD$39.7 million (NZ$50 million).