RE: context14 Sep 2018 11:00
Hi paaa. The 25th October 2016 RNS states, with no mention of Stage 2 :-
The Royalty Financing Agreement is conditional upon the Company completing its Stage 1 financing (taking into consideration amounts received under the Royalty Financing Agreement) and two confirmatory due diligence items which will be satisfied prior to the Stage 1 financing being finalised.   Â
Once completed, drawdown of funds under the Royalty Financing Agreement is conditional on, inter alia, notice having been given to Hancock that the Company has expended US$630 million of the total amount of its stage 1 financing; creation of the royalty interest including the granting of certain obligations and arrangements to secure such obligations in favour of Hancock, to ensure that the Royalty attaches to certain assets which comprise the Project; all material permits, commercial arrangements and authorisations for the Project remaining in place; and other drawdown conditions typical for an agreement of this nature.
I’m either missing something, or the inference that it is dependant upon Stage 2 in the Prospectus is an additional condition. One which was not stated in the 2016 RNS. If ‘inter alia’ was intended to mean ‘subject to Stage 2 being completed’, why the heck didn’t it say that?
R