response from dave - director of inl

Taken from: http://www.intec.com.au/public_panel/forum_topic.php?id=392

Response from Dave Sammut, Intec Ltd

Hi Mike and Stuart,

It is well outside of office hours, so I won't have the opportunity to check with a Director before publishing this post. I hope you will bear with me while I outline what I can, and reserve the full discussion for the Directors at tomorrow's AGM.

I would encourage you to listen to the live broadcast of tomorrow's AGM, and then to ask any additional questions you may have after that event. Please also note that I will be monitoring my email as best I can during the AGM, so I may be able to relay a question during the appropriate portion of the event provided that you have provided me in advance with the information complying with Intec's Investor Enquiry Policy: your full name, the name in which you hold your shares, and any two of your email address, phone number and/or address.

Now, the two key aspects that you will be interested in are the transaction and the technology. Let's start with the transaction. As part of the agreement, JX Nippon will pay Intec A$5 million (exclusive of GST) within the next 14 days. This transaction does not involve Intec equity or debt. There is no dilution of shareholders involved. It is a simple, full and virtually immediate revenue to Intec.

On the technology front, Intec has the Intec Process, JX Nippon has the Nikko-chloride process. Both are hydrometallurgical technologies, with certain commonalities. However, the Intec Process has some notable advantages, most particularly in the extraction and recovery of gold. It is publicly known that JX Nippon has constructed and is operating a demonstration plant in Perth at which it is treating copper-gold concentrate from Newcrest. Indeed, we have been asked about Nippon's operation previously on this Forum. The cross-licensing gives Intec access to the Nikko-chloride process, and JX Nippon access to the Intec Copper Process.