Whats the signal?, page-46

Hi baukaw,

IMO you've identified exactly the where the gamble is on this play.

If the Chinese want 100% of the project they can start the 9 month clock, order SOE's to halt discussions with SDL at the mine partner level, and wait for the Cameroon Government to strip the licences from SDL.

Another variation, the Chinese could indicate to the Cameroon Government that Sovereign funding will only be provided if a Chinese SOE controls 75% (enter your own figure here) of total mine equity.

Apparently though, you are not allowed to acknowledge these possibilities/risks if you are a shareholder. All you are allowed to discuss is sunshine and $1.66 rainbows.

Going back to the topic of this thread, which is what I was originally replying to... The above risks are why IMO the mine partner negotiations are the major milestone for SDL.

Cheers!