perkoa zinc off take agreements, page-10

I love that phrase.Letters of intent.It sounds so non-committal.

Oh well we continue to crawl to mine development and I suppose ultimately,whats the great hurry.As long as they get the cash by years end which is when they will need it by to get things moving at Perkoa.

I would have like to have perhaps seen some cash(debt) for concentrate but then the terms may not have been good enough compared to what these offtake partners can do.From a few items in the last few months some of these debt deals that smelters have been doing have been at great cost to those smelters as quite a few have ended up closing.Better to go with the likes of these partners who obviously have good capital backing/CV's from the looks of the annmnt.After all zinc isnt always going to be at these prices,as much as we'd like to think it will be.

So it looks like we'll have to rely on the Barclays expertise in pulling in the debt to minimise the equity.Seems like my 80:20 debt/equity is fading into the distance.

Mushy annmnt all in all.One wonders why they bother with letters of intent.

d.

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