Mid-Tier Mining House, page-97

Was cleaning up my desk and came across some notes I had scribbled down a while ago about what the ICO project finance may look like. Obviously, I am completely speculating here. What will be, will be, and I have no doubt that Bryce will secure funding shortly. Thought that I would share anyway.

US$30m in funding from the USG via their critical minerals program. Cobalt has been designated as a critical mineral.

US$50m project financing facility (senior commercial debt from a Tier-1 bank/s). Possibly supported by a tranche of subordinated debt.

Tenor: 3-4 years.

Last repayment: 31 December 2024.

r = 3.5-4% p/a (BBSY + 360 basis points).

Recent equity raise will defer the initial debt financing drawdown until mid-2021.

Quarterly repayments from mid-2022.

Provision for mandatory hedging.

So, around US$80m in total, which covers our total project capital cost of US$78.4 million.

Hopefully, we hear something soon. The SP has been moving up recently. And I wouldn't be surprised if institutions are starting to position themselves. Either or both of the above are significant catalysts that will see us jump that final and critical hurdle, on our transition from a developer to a miner.

GLTA