Ann: Faboliden Test Mining Permit granted, page-3

There is potential for this part of the T's & C's to be positive IMO(but we don't have all the facts as yet). From Pg 173 of the HK Listing document:
'Our Group has submitted an application for test mining operations at Faboliden Project for the processing of a total of 100,000 tonnes of ore. As advised by our legal advisers as to Swedish law, an Environmental Permit for test mining operations is not usually time-limited but instead limited to a set volume of ore.'

So the permit conditions have in fact turned out to be time limited, in that 'test mining may be undertaken during a maximum of two consecutive calendar years.'
But there is no reference in Dragon's release yesterday that the test mining is volume limited also and so it is reasonable to assume that it isn't.
To me this would be positive as you would expect them to mine 100,000 tonnes of ore in four to five months so now we have up to twenty four months to mine.
Dragon have said that the Full Feasibility study will be completed/lodged by the end of 2017 or maybe first quarter next year and on pg176b have stated: 'we have assumed operations commence at Faboliden Project under the full mining permit in the third quarter of 2019 in our production schedule, allowing time to settle potential appeals.'
We can see from this that the test mining operation is likely to dove-tail nicely with the full mining operation without any need to cease mining for a period of time.

As regards our listing on HKEx , the release from Dragon on 10Nov17 stated that 'the HKEx had requested the Company must obtain the Environmental Permit for test mining operations at its Faboliden Project before Listing and the terms of such permit must allow the Faboliden Project to commence operations even if it is under appeal.'
It would appear that the T's & C's of the test mining permit must state that operations cannot commence at Faboliden until all appeals have been dismissed. You might have to allow a period of say, six months for this to play out. So HKEx is not going to give permission to list before Faboliden operations can commence so our application will expire on 12Apr18 so it seems probable that the listing won't go ahead at this stage but you would think that it could be revived mid-2018 if Management wanted to pursue it as 99% of the work has already been done at great cost to shareholders.

You would also have to assume that Faboliden operations won't commence until ~Jul18 at the earliest.

The only other concern then becomes funding for this interim period and for Faboliden development costs if the HKEx listing proposal is permanently terminated. Will Allied Properties continue to finance us during this period?

These are purely my thoughts as I haven't discussed any of this with Management so please do not rely on it.