independent valuation of luapula plant, page-175

"And you reckon somebody is going to hand over $25M for offtake, to a company with NO CASHFLOW and NO RESOURCES and could literally go broke in this downturn. How are they going to get their money back if WFE went broke? You reckon they are that silly?!?"

For me it's a bit of a no brainer for an offtake partner really. They advance US$25m in exchange for securing the Cu/Co concentrates produced and they take security over the plant etc. If the JV company fails to deliver, then the offtake partner exercises their rights as a secured creditor to take the plant, or to sell it as mortgagee. If they then take over the plant, they can process the ore to produce concentrates for themself going forward. Either way, they'll get their money.