what are "others sources of funding" looking for?Debt providers are the last to commit their funds to a diamond exploration project but DOR need to find one to provide more than half of the overall project costs to bulk sampling stage (DOR have already raised and spent $45m through equity capital).
A debt providers primary objective is to ensure that the loan principal is repaid with interest. Lenders will not provide
project financing to the leadbetter unless the Lenders are reasonably confident on that the project will generate
sufficient income to repay principal and interest on their loans with an appropriate cushion for contingencies. It is the assurance of this income together with control over the project and security over all of the project assets that allow lenders to make their project finance loans.
The most critical matter that any lender will look for in any leadbetter project financing is 'bankability'
Is the Leadbetter project “bankable”? The word “bankable” is often used in the context of mining project
financings but it is not defined or used in a consistent manner. For example, definitive feasibility studies and material project contracts are often what is referred to as bankable.
Structures that allow projects to be funded by bank debt are also called bankable.
A general description of the term might be a project that is in a form and has the content that lenders view
as suitable for financing and conforms to mining market practice. Whether or not a project is bankable is a fluid and subjective conc providers primary objective is to ensure that the loan principal is repaid with interest. Lenders will not provide
project financing to the leadbetter unless the Lenders are reasonably confident on that the project will generate
sufficient income to repay principal and interest on their loans with an appropriate cushion for contingencies. It is the assurance of this income together with control over the project and security over all of the project assets that allow lenders to make their project finance loans.
The most critical matter that any lender will look for in any leadbetter project financing is 'bankability'
Is the Leadbetter project “bankable”? The word “bankable” is often used in the context of mining project
financings but it is not defined or used in a consistent manner. For example, definitive feasibility studies and material project contracts are often what is referred to as bankable.
Structures that allow projects to be funded by bank debt are also called bankable.
A general description of the term might be a project that is in a form and has the content that lenders view
as suitable for financing and conforms to mining market practice. Whether or not a project is bankable is a fluid and subjective concept but one that is generally understood by mining project financing participants.
The completion of a bankable feasibility study is crucial for any mining project financing. Canadian securities laws define a feasibility study as a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production. The lenders will require that they have their own technical engineer or consultant
appointed who will, among other things, review and report on the feasibility study.
so the question for DOR shareholders is ....... are we currently 'bankable' in this environment
we will find out in the next couple of months.....
this $30m ELOC deal with Kodiak has established DOR as 'Creditworthy'..... any debt provider can now see that DOR can meet the