Money Talks... Majormac, I doubt bank financing of 100% of the project is possible without IMC involved. When one borrows money to buy a house, the bank expects a significant downpayment, thus the bank is more secure that there is sufficient equity to pay the debt even if times get ugly. There are some loans out there with minimal downpayments, but the terms of such loans are terrible for the person borrowing, and as seen in the USA over the past 4 years in the subprime mortgage world, also terrible for the banks because they are too risky. The NR only claimed that Woulfe would get the loan secured by equity in Sangdong mine (without requiring IMC to co-sign or guarantee the loan). However, there was always the understanding that the $70M cash equity from IMC would be in play to create sufficient equity for the security of the bank loan. I don't think the bank will advance one dime before IMC does the equivolent of a "downpayment" (pays the next $30M to create the equity).
Woulfe having cried "wolf" too many times with dates, none of us now know if or when IMC will firm up the offtake. After all, it was as recently as August 1st that the Woulfe June Presentation was amended to state the IMC dd would be completed by the first week of August. I believe Woulfe really believed what they were saying. It doesn't appear as if anything has changed since then (other than the $5M PP to pay outstanding debts and raise some temporary working capital until IMC pays the next $30M). All indications are that Woulfe still believes IMC is their partner and the offtake will be firmed up soon. There is not one shred of evidence regarding a buyout. It is always possible that some of the offtake terms could be amended, but there is also no evidence of this happening. IMC is looking decades into the future (unlike many Woulfe shareholders who don't look beyond the next day, before developing wild theories).
My money is on IMC firming up the offtake soon. Why else would Woulfe state the dd would be completed the first week of August? Do I feel 100% comfortable with where my money is? No. But this is penny stock. I do feel 80% comfortable--on the balance of probabilities-that is a pretty high number. If I want higher comfort level, maybe I should put my money in some savings account. The risk is present, but so is the potential for significant increases with a bit more patience. Just think, with all this dd by IMC, once they confirm the offtake, investors are going to have all the more confidence in Woulfe. Come on IMC, throw us a bone.