Good to see some others getting into the numbers. It is my...

Good to see some others getting into the numbers.

It is my personal opinion that IF Mt. Peake moves to production under its ownership structure (ie, TNG Limited only), there will be limited equity dilution in the company.

KMPG have been engaged as corporate advisers. KPMG doesn’t have a equity capital markets (ECM) team. If you were planning to raise a big chunk of capital on the equity markets, you’d have engaged an investment bank who has the ECM capability.

KPMG Corp Finance have a known capability of bringing projects together with project partners and other financing mechanisms. Ie) equity provide through acquiring a stake in Mt. Peake Project and pre-production finance.

Further, from a senior financers position, there are certain funding structures that will not be considered debt. Pre-production financing from an offtaker (most likely a Woojin in my opinion given the statement in the offtake announcement dated 7/9/15) wouldn’t count and neither would something like a convertible note which is a form of Mezzanine financing.

Say we bring all the BOOT on balance sheet – we have a $1.2B funding requirement and at 70/30, we need $360m in considered equity.

There are groups out there that are know convertible note lender to the ASX and TSX and for a project out our size, I think they could go to $50m. Pre-production financing levels might be a bit like pinning the tail of the donkey but let’s say another $50m (which seems reasonable of LOM revenue from Woojin on $8B).

That leaves ~ $250m to raise…and for reasons stated above I believe it would be project level.

That said, I still think there is a buyer for Mt. Peake and we’ll all get a nice deposit in the bank…plus some in-specie distributions of some new companies