Ok guys, I had the email resent.....The question I basically ask...

Ok guys, I had the email resent.....
The question I basically ask was about funding, As I was worried about cash running out.

I have placed an order for LMG stock, However the share price has not dropped down to my buy price. I might have to revise and raise my by price as I want to get in on the action.

Dear Ben

David Hughes has sent on your email to me for a response.

1. Funding Comment
When looking at cash at bank you are correct. It is getting low. However:
(a) we have a promissory note that is due to be repaid of $150,000 (see accounts receivables in the half yearly)
(b) we announced and received this week $45,000 from the exercise of some options.
(c) we will receive the Tax R&D Offset moneys that we claim every year late August/September. You can see the moneys received in previous years in our financial accounts. You can see an amount of some $270,000 accrued in the 6 months to 31 December 2011 in the half yearly accounts. This amount will be not quite doubled for the year.

2. Government Funding
We have applied for State Government assistance for funding in both the Bankable Study and also the construction phase. We have been approved by Regional Development Victoria (RDV) to put an application in for assistance with the bankable study. They have a small fund available. They are waiting for us to proceed into the bankable study before submitting the application. I am meeting with the Minister later this month to discuss these aspects. Both Department of Business and Innovation and RDV have expressed their support for the project.

The Federal Government response to the project has also been positive.

3. Funding Structure and Amount
You are correct in principle. We are looking for 50% from Governments, 25% from banks based on offtake agreements for our products or similar funding mechanisms and 25% from a cornerstone investor. We have announced recently capital costs savings of some $10 million and we are hopeful that we can make further significant reductions with the work that we are currently undertaking.

I trust the above answers your queries. Otherwise, you can call me on 02 9251 0400

Regards

David Paterson