Ann: Sale of Akoase Gold Project Update, page-34

Had a chat to Charles Thomas the other day. His responses to my questions were better than expected.

My concerns about the cheque arriving on the 31st of July were put at ease because he pointed out the Chinese will lose their $5m deposit if they don't come up with the remainder AND we will retain Akoase. If this occurs we have been gifted $5m. Very unlikely.

My concerns then shifted to funding for the new project, however it sounds as if there are other interested parties that want Akoase in the unlikely even it falls through. If we can flog that off for another $8-10m on top of the $5m we have already received we will be laughing.

I said I was not happy about the cash burn rate and Charles shared my sentiment as the largest shareholder. Apparently unavoidable legally binding legacy contracts and termination payments.


One other interesting thing, he said 95% of their time has been spent on the new project. I questioned whether a "cheaper" option had being considered if the cheque doesn't arrive and it has not. Shows confidence in the money arriving, and also shows they are looking for the right project, not whatever they can afford.

So at $7.8m MC with $3.2m cash + $3m due in a month the EV is $1.6m. It's actually negative if you include the $2m due when Akoase moves to production down the track.

AND to top it off the project hunt should technically be over. GTT were contracted until the end of June to find a project. I'm assuming the only hold up is money arriving. If that's the case I'm expecting to see a top notch acquisition with very little dilution shortly after July 31st.