On the 6th March 2017 the Consolidated Entity entered into a...

On the 6th March 2017 the Consolidated Entity entered into a Loan Agreement with Tanah Capital Pte Ltd. Under the Loan
Agreement the Consolidated Entity has the ability to draw down A$350,000. The funds are to be used to pay for the smelter
deposit which will cost USD$250,000. The funds of A$350,000 was drawn down and received on 8th March 2017. The term of
the loan is for 3 months from the date of the agreement and attracts an interest charge of 1% per month. On the basis the
Consolidated Entity can complete the Private Placement, the repayment of the Loan will be paid from the funds raised from
the Private Placement. If the Private Placement cannot be completed within 3 months from the 6th March 2017 then the Loan
is repayable in cash.
The directors have prepared a cash flow forecast, which includes the completion of the above activities that indicates that
the Consolidated Entity will have sufficient cash flows to meet all commitments and working capital requirements for the 12
month period from the date of signing this financial report.
In the event the above matters are not achieved, the Consolidated Entity will be required to raise funds of approximately $1.5
million for working capital, including repayment of the Loan to Tanah Capital from debt or equity sources by May 2017.
Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis
of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the directors are confident
of the Consolidated Entity’s ability to raise additional funds as and when they are required.
Should the Consolidated Entity be unable to continue as a going concern it may be required to realise its assets and extinguish
its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts or to the amount and classification of liabilities that might result should the Consolidated Entity be unable to
continue as a going concern and meet its debts as and when they fall due.







Can someone give there interpretation of this? Particularly the cashflow statement for 12 months? Is that of the the placement is successful?