When EPC contract was signed, Arccon was in suspension due to...

When EPC contract was signed, Arccon was in suspension due to financial & debt issue. Arccon has been negotiating hard with the bank (Westpac) for the loan extension/renewal. Unfortunately Arccon hasn't got much cash reserves & intangible assets. Combined with negative cash flow... made it impossible to get finance renewal. The only possible way is to look good on paper based on guarantee future MOU.

One thing I find it strange was that, in order for RXM to obtain finance is to complete DFS & submit BFS. Then the bank will consider (6-12 months) after reviewing the BFS. There is NO single occasion in Australian mining history (or in the modern mining world) where the bank will lend money without reviewing the BFS !!! on the other hand, as mentioned by Kissie,(Arcoon, NFC & Ironbark) agreement is different & advantegous. Chinese bank is reviewing Ironbark Zinc (IBG) finance approval because BFS was submitted in April this year. Too bad Arccon has collapsed, NFC will source out other minor "carpenter" for this project in Greenland.

But the ann said that the contract will go through in Oct. I find it really really strange..... however, the end story is the big banks always smarter than junior corporations assumption. Please think about it, it about preserving our hard earned money.