Cardinal Resources Inc fka CDNL

[sillylung]

From the cameroon update
http://c.eqcdn.com/_4733ae9bd2fc6de568cc8a18cf1f7964/cardinalres/db/3/4229/file/Cameroon+Trip+Update.pdf

1. What is the relationship between the original Commercial Contract and the new Supply Contract? Ans: They are two separate valid contracts. We are focused on completing the Supply Contract as it fits under the current EXIM protocol. The original Commercial Contract is still valid. Once we have the Supply Contract moving forward we will look for other potential finance sources such as the Africa Development Bank for the original contract. Alternatively once EXIM has a Quorum we could ask for an updated review of the original. This is a change in approach that is based on our customers’ needs and the requirements of the EXIM bank.
2. With the contract does Cardinal Resources now have the money? Ans: Not yet. There is still a process to go through. As with the original contract, the Supply Contract is contingent on ECA funding.
3. What happens next? Ans. The first steps of the final process are the revision of the Project Report (complete) and a revised term sheet from the commercial bank to CAMWATER/MINEPAT. This is combined with CAMWATERs work that is walked through the Cameroon side of the process. At that point either MINEPAT or the commercial bank completes the on-line EXIM application. EXIM indicated in the pre-trip meeting that this is an expedited review for this type of finance.
4. How does Cardinal Resources get paid? Ans. With the initiation of the work we receive a 15% down payment. The commercial bank provides a Letter of Credit and invoices (progress and time and materials) are presented to the bank and paid again the LOC.