Replies to post #11276 on Allana Potash fka AAA

[RErobot]

Combining replies on our discussion:

Are mandate letters agreed upon financing? My impression was it was many banks giving term sheets on what they were willing to contribute to the financing to one bank organizing the whole deal. I thought we needed to remove subjects, environmental, and testing(replacement rates for water) requirements to get the complete construction cost financing from all of the players in the bag.

Also, the cash flow woes described here could be overcome. Being involved in a lot of construction in another industry, it is easy to shuffle your requirements around so you're drawing on you loan before you've got all of your "cash" equity in a project.

Maybe it's different here but Equity and cash contributions don't always need to be the same thing at the beginning of a project.One example: the bank may place a value on existing conditions that exceeds what was historically spent to purchase/construct them, and call it equity. A land lift, or any improvement valued above book. I'd like to be clear that I am speculating here, but it seems like a small problem to me.