First Tidal Acquisition Corp T.AAA

RE:Let's talk DEBT plans....as per Allana AGM update.

[Fertiman]

Myliar... The information below was stated at the Allana AGM.  As mentioned below.  The information that Allana presented is their current plan to move forward to minimize dillution.  My comments here as a long time share holder is based on company DD and their latest updates.  The success of the investment I made will be solely on the actions of the company and their ability to move the MOP and SOP projects forward.  My vision is long term and I stand behind my investment here.  These are also my opinions based on my ongoing DD.  Allana's OPEX for MOP is one of the best in the industry in an emerging African and ever so tightly competative global market.  SOP PEA also shows favorable OPEX with $130 Ton but as we know this is based on a PEA which shows a +-35% confidence level.  But with this OPEX at $130 that would mean we could see a good OPEX regarless of the margin of possible error IMO.  I think looking to YARA is also a good indication for the OPEX.  In addition Allana is conducting research to see if MOP and SOP can be mined jointly which would lower the OPEX from the $130 stated in the SOP PEA.

So yes I agree not much happening more likely until Allana's consultant comes back with the SOP recomendations or some type of SOP announcement.  And yes I'm prepared to wait. :)

Fertiman wrote:

At around the 10 minute mark Farhad spoke of the debt plan and how they are planning to minimize dilution for current shareholders and not issue a lot of EQUITY.   He mentioned working with their DFI - EXIM Bank for the past several months on the debt.

Today they have visability at around 55% of the Entire CAPEX 


and are in talks with large Eurpoean banks but also one American bank as well, to bring in a commercial tranche into the project.  FArhad said they are looking at probably another 10-20% of the entire CAPEX.  Roughly $500 million dollars would be coming through debt financing.

For the remining $150 million they are looking at the combination of two things.  First off there will be some dillution through equity.  They have clear visability of where the equity will come from.  Existing major share holders and some new large new private equity funds / mining private equity funds who are interested in the project.  

Also Allana is in talks with Royalty Financing Groups based out of London, UK.  They want to put in between $50 and $75 million.  They have received term sheets from all the commercial banks, private equity groups.  Farhad stated that they think they can bring all this together by the end of the second quarter.

The key thing here is the DFI's, as FArhad felt once they thave made a positive decision all the other commercial banks will also fall in line.  Farhad felts they would happen at the same time and have also engaged the equity investors so that they will also come in around the same time.

At this point Farhad then moved onto the discussion of the SOP strategic thinking and developments.

Now if we look at the required 650 million and the $500 million of debt that is planned this leaves around $150 million as per farhad.  If you take the $50-$75 million for the royalty finance groups this leaves around $75 - $100 million needed for equity.


Now... Let's say Allana moves ahead over the next few weeks and selects a strategic partner for the SOP development.  In the process the share price move forward due to the development and the partnership.  Let's say we move to $0.50 or $0.60 cents / share as a result. (all hypothetical, but not out of the question IMO).

So let's assume equity at $0.50/share. (again hypothetical).

$100 million @ $0.50 / share = 200 million new shares.

$75 million @ $0.50 / share = 150 million new shares.

Now if you consider ICL's share buy in option this was released based on the ICL second tranche placement.  - news release March 31-2014.

"The Second Tranche Offering is part of the Company's strategic alliance with ICL pursuant to which an ICL subsidiary entered into a Share Purchase Agreement with Allana on February 12, 2014 for an aggregate investment of $25 million in Units of the Company at a price of $0.47 per Unit on a private placement basis (the "Offering") with the potential for a total investment of up to $84 million upon full exercise of the Warrants comprising part of the Units. The Company closed on the initial $10.6 million investment on February 12, 2014.

So if I am correct $84 million - $25 million = $59 million @ $0.47 / unit.

So based on the hypothetical situation above with $75 - $100 million required for Equity then the ICL numbers would fall in line if they chose to contribute to the $84 million as per above.

The question I have is what would the SOP partner bring to the table and how will this effect teh above??

Also as you can see I do not see how Allana would get to 1 -2 billion shares as per some of the board trolls.

The information posted here was comments made from Farhad at teh Allana AGM and their plan that they would like to move forward.  As we know plans change and the way I see it the SOP PEA had dramatically changed the scope and viability of the Allana Danakil project.

My interpretation please do your DD.