KP2 Discussion, page-417

In this section of the Half Yearly Report, KP2 states:


"....dialogue with the Ministry of Mines........to improve the Ministry's understanding of the Company.....and the process the Company must work through towards securing financing for the construction of the Kola Potash Project."

and

"This dialogue has included meetings between the Ministry and members of the Summit Consortium who intend to provide royalty and debt financing to cover the full construction cost of Kola...."

IMO, these statements strongly indicate that the finance providers (Summit Consortium) are heavily engaged and involved in the EPC contract negotiations. The importance of this development is that the finance providers are already ensuring that they will be satisfied with the result of the negotiations and the final EPC contract before the final deal is presented to the finance providers. By extension, this would mean that the finance approval process is running concurrently with EPC negotiations and that a successful EPC contract signing would essentially mean successful financial approval (subject to drawing up the finance contract and final signatures).

In short, IMO, the fact that the finance providers are involved in the EPC negotiations means that finance approval is pretty much in the bag once the EPC contract is signed (as KP2 commonly states: finance will be provided within 6 weeks of EPC contract signing).