Mining License to be granted very soon... License news expected any time now .....
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We have a soft commitment from a consortium of export development banks for about US$700 million in debt financing. These soft commitments have to be turned into firm commitments, and that’s what we’re working on now. The banks that make up this consortium are in the process of making all the due diligence. They have all the technical and feasibility study information in hand. and we should have some idea of their final decision this fall.
We intend to fund the project 60 to 65 percent with debt, 30 to 35 percent with equity. The key component after debt financing is the equity financing. Coming to the market now and trying to raise $150 million to $200 million in equity would be very detrimental to our stock’s dilution factor. so we are looking instead at strategic off-take agreements.
We’re speaking with numerous organizations; some are sovereign wealth funds, some are independents, some are fertilizer producers, some are trading houses and agents, and even some potash producers that want to invest in a different geographical jurisdiction. The strategy is that we can get off-takes for 200,000 or 300,000 tonnes each, and a commitment from these off-takers for equity, either at the project level or the corporate level, where they would put in X-amount of millions to secure their off-take at favorable commercial rates, but also have a position in the project.
We also have well over $20 million in the bank, so we’re well-funded;
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