Paperhanger there is no way commercial lenders will finance...

Paperhanger

there is no way commercial lenders will finance agbaja unless the management prove the process. You are correct that this requires a series of pilot scale tests which grow on scale. This is the process the management has been following. We showed that the phos could be removed, subsequent management showed the costs could be lowered. The next step is a small pilot plant followed by larger ones. If the WA projects can be gotten up and running then the profits could be used to take this forward - only needs about US$10m (or at last it did, costs seem to be spiralling globally at the moment).

the management can’t put out a statement that the project can be financed without proving the process as this would just be untrue, but, with cash flow from WA iron they could continue down the development path.

finally - you are right - lots of good projects don’t get financed because banks are conservative and only want to finance what they know - this doesn’t make agbaja impossible - I just makes cultivating the relationship with potential lending banks even more important. A statement from the management about which banks they are in discussions with (and no, that’s not too early, these structures take years of discussions and relationship building to pull off) might comfort shareholders that the process of getting commercial project debt for agbaja is being taken seriously.