@82Punter ........."Like you say Oz, what collateral could be...

@82Punter ........."Like you say Oz, what collateral could be given to secure any advance payments... Maybe a processing plant valued at US$70m??"

Do WFE have permission to use the plant as collateral for upfront payment?? I must have misssed that announcement, can someone please point me to where this has been stated.

Certainly not yet, though, as they have not paid the $US5.5M for the 50% JV.
Until they pay the $US5.5M (and shares) they have nothing to use as collateral. Even after they pay the $US5.5M (so assuming prospectus raises $A10m), the company still has to spend ~$US10M to get the plant up and running to be close to that $US70M valuation.

Current valuation as is = $US33M according to Mr Connelly's report.

The plant is currently broken, so needs repair, has been written down to $0 by previous owner. That does not give any confidence to anyone as collateral.

Going back to the original announcement from July 23 2018, It appears that WFE are wholly responsible for the initial funding, ie the current estimate of $US10M for initial capital and working capital requirements.... from P1.

https://www.asx.com.au/asxpdf/20180723/pdf/43wpsd3zx5s96p.pdf

"To fund the up-front acquisition costs and initial capital and working capital requirements of the Luapula Processing Facility and exploration and development activities on the licenses, the Company is proposing to complete a capital raising to raise A$8.0m."

(perhaps a shareholder or 2 should check on the above??)

If WFE are responsible for that entire cost, why would AHIC allow the plant to be used as collateral and have the entire plant at risk of being taken off them?? It does not make any commercial sense!!

So much of this project does not seem to make commercial sense at the fully diluted Market Cap.