Blast from the past @Simmpa, @unicrumba  Indicative funding:...

Blast from the past @Simmpa, @unicrumba

 Indicative funding: The BFS capex estimate is US$88.9m. KNL’s indicated target is 40% equity and 60% debt. KfW IPEX-Bank and Nedbank CIB have confirmed their intention to progress the debt financing program following the changes in Tanzanian legislation. The German government has offered a loan guarantee for up to US$40m, with KfW Bank expected to provide the project debt of ~US$65m. KNL could potentially pre-sell product to assist in equity, working capital or project equity. We have assumed that US$35m is the equity gap, or ~A$45m, which is raised through an issue of 307m shares at 15c to fund KNL’s share in the project. Based on the proposed timing of the commercial spherical graphite and our modelling of cash flows, KNL’s funding of the SpG plant would need to be staged. Options for funding the US$66m for the SpG plant are increased debt, a sell down of equity in the project in return for funding, a strategic relationship and offtake with consumers. However, if it were to retain 100% of the Epanko mining operations, cash flows would be higher and it may be possible to fund the development with additional pre-sales of concentrate or SpG, debt and a smaller sell-down.