Hi @Pepper70, your post about timelines got me thinking about...

Hi @Pepper70, your post about timelines got me thinking about how many had been missed over the years.

Looking back through a few old announcements I came across this one made back on the 17 December, 2017 – https://www.asx.com.au/asxpdf/20171220/pdf/43qb2bytfbj6qd.pdf

“Kibaran secures exclusive rights to graphite processing expertise of leading German consultants and lodges provisional patent”

In reading through this announcement it was interesting to note that Kibaran (at the time) entered into a binding heads of agreement with ProGraphite, the brains behind the Ecograph process, to produce battery grade graphite, secure intellectual property rights and processing expertise.

The announcement states:

“As consideration for granting these rights, ProGraphite will be entitled to receive a future royalty from the commercial sales of the downstream processing business. Kibaran may also elect to buy-back the royalty at any time up to 31 December 2020 for A$2 million, payable in cash or shares.

The royalty rate will be finalised within the definitive agreement which both parties have agreed to be completed no later than 1 May 2018.

My question is what is the royalty rate which was to be finalised no later than 1 May 2018?

Has it been announced to the market?

I note even NL was still unaware of this royalty rate in a post dated 15/7/2020.
https://hotcopper.com.au/threads/an...476566/page-138?post_id=45868788#.Xy-u-igzZPY

If it hasn’t been agreed, does that mean EGR will have to pay out ProGraphite in 4 months (31 December 2020)? If so, the quarterly indicated only $2.7m in cash at the end of June. Its now August. Or, do they issue another 30 million odd shares at today's current share price diluting current holders?

Does EGR require ProGrahite to assist in building and operating the plant? From the announcement:

The principal activities of ProGraphite will be on an exclusive basis and include:

• undertaking development programmes for battery graphite and other value-added graphite materials (including nanoparticles);
• managing downstream processing facilities; and
• optimising the effectiveness and efficiency of production and purification processes

Would a buy out at this time therefore not be an option?

What are your thoughts on the above @MrGraphite2? It seems there's not a lot of transparency from the BOD regarding this.

December is coming up quickly… What is the Royalty Rate?