Good Morning Names,
You only need to read through a few ASX announcements, WKT is fantastic at Marketing and selling the dream.
WKT has gone from being offered alternative funding options from several prospective lender, that has resulted in them needing to obtain mortgage insurance. No management would even consider this idea if the nordic bonds were likely, although it does appear we were correct that WKT woudln't be able to secure fund from the Nordic bond market, I am surprised that Natos and Co are so excited that Parto Securities weren't even mentioned in the Annual report, I thought they were assisting WKT with its other funding options?
It appears WKT only has one funding option, that is the African Development bank, Why did these other prospective lenders pull out, when they were offering WKT alternative funding?
Do you think it is likely the current internal DD that the African bank is completing is only the initial assessment to be offered a binding term sheet? There has been no ASX announcement that WKT has secured the 'Binding Term Sheet' from the African Development Bank.
Did you also notice in the Annual report that two of the T20 were starting to reduce their holding?
12th December 2019
In addition, the Company has received alternate funding proposals which are currently being assessed, on the basis they could potentially lower the total cost of finance.
25th of March 2020
The Company continues to work towards a funding solution with international investment bank, Pareto Securities (Pareto), to raise US$40m to fund the development of the Lindi Jumbo Graphite Project
Several interested parties comprising large African development banks and agencies are concurrently conducting their internal due diligence, economic assessment and independent review of the Project and of the international graphite market.
the Company has been negotiating with a preferred African based bank in regard to securing a binding term sheet. The internal application submission is due shortly and will be reviewed by the relevant Board of this bank, seeking approval to advance the application.
March QTR Report
The immediate objective is to secure binding term sheets which will determine funding partners and the structure to be adopted moving forward.
June QTR Report
in March this year, the Company commenced direct negotiations with an African development bank and has received a non-binding, conditional Term Sheet for direct debt for a total of US$30 million. In order to progress this transaction and meet a series of the bank’s stringent loan security requirements, including an equity component precondition, ongoing work remains to be finalised and is the immediate focus for the Company.
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