kaboko mining concludes us$3 million debt faci, page-68

"nathanblack! you said:

"Also understand that the vendor still gets progress/milestone payments. ie more shares as certain milestones are achieved. So their is a fair bit of debt and dilution about."

Do you like to shed some lights on this statement, if you are stating this a fact, please show us official announcement or clarify your sources, we need to see details of these milestones to determine its effect on kaboko finances. "

Hi Santoo. I hope you're well after your late night. Sometimes I expect people to do their own research. You can't trust HC opinion.

From the annual report you have:
"(iv) Deferred acquisition liability
As disclosed at note 21, the Group has recorded a deferred acquisition liability of $3,731,801 at 30 June 2012, of which $1,680,000 relates to milestone payments and $2,051,801 relates to a royalty payable to the vendors of African Asian Mining Development Ltd. Both components of the deferred acquisition liability are subject to judgements and estimates and therefore are subject to change as the underlying assumptions change"

"(ii) In accordance with the share sale agreement, the Group will issue 80,000,000 Shares on the date the
Zambian Manganese Projects achieve a minimum of 10,000,000 tonnes of JORC (or equivalent) manganese resource within 18 months from the execution of the share sale agreement. A value of $480,000 has been assigned to these shares based upon a 100% probability of meeting the performance milestone due to the expected acceleration of project development upon the finalisation of funding from Noble Group as announced July 2012.

(iii) In accordance with the share sale agreement, the Group will issue 80,000,000 Shares with 80,000,000 free
attaching options exercisable at $0.08 on or before 1 April 2014 on the date the Zambian Manganese Projects achieve a minimum manganese production of 30,000 tonnes per month of JORC (or equivalent) Saleable Manganese Ore for at least 3 months within any 6 month period, provided that it is achieved within 30 months from the execution of the share sale agreement. A value of $1,120,000 has
been assigned to these shares based upon a 100% probability of meeting the performance milestone due to the expected acceleration of project development upon the finalisation of funding from Noble Group as announced July 2012."

The OTHER TRANSACTIONS WITH DIRECTORS AND DIRECTOR RELATED ENTITIES heading is always an interesting read. It shows the money trail. Always consulting fees and options.

The positives are low impurities, low royalties, low tax regime.