Early1, if you read announcements regarding the MoU, you will...

Early1, if you read announcements regarding the MoU, you will understand that the path is already laid to minimise the financing needs that fall directly upon IBG.

The MoU provides for EPC and funding to be provided by the Chinese. The original MoU was put in place a few years back, and in 2014 was revised to provide a far closer relationship between and Chinese and IBG (as opposed to working through third parties).

The updated MoU outlines the following:

- The first 70% of funding will come via debt from Chinese banks
- The Chinese have an option to acquire 20% of the project directly, meaning funds directly to IBG for that interest
- The remaining 10% to be funded by IBG. This may come from an equity raising

Given the above, the capital requirements from IBG directly are relatively modest, and my expectation is that they will be raising capital at much higher valuations that where current day prices are. Once the mining licence is granted in (my estimate) H1 2015, we can expect to hear a lot more regarding the specifics of funding in H2 2015.