Replies to post #13313 on Cardinal Resources Inc fka CDNL

[tjguy]

OK, sorry, maybe I misunderstood the news release, but here is how I understood it:

CAMWATER
: We will begin the first phase of work on the CAMWATER contract starting the week of June 15th
. This work, which supplements the existing contract, is needed to meet new Cameroonian requirements for debt funded projects and will speed up the deployment of systems in Cameroon. It is a crucial first step in finally moving to full scale implementation that will also involve MINEE, the Ministry of Water Resources and Energy in completing the work. This is contracted work that will commence at the same time or prior to receipt of the total project financing that is still under review with the Export Credit Agencies (US and China), MINEPAT, and the commercial banks.

So maybe I'm wrong, but it says it supplements the existing contract so I took it to mean that it is outside of the existing contract. It is related to it and seems necessary for the existing contract to come to fruition, but it supplements it.

[The Rainmaker]

DD $(975,000) Extra work on top of CAMWATER could mean another $26 MILLION to CDNL

He is right it is not part of the $28m deal. Its another possible $26 million dollars and it is great news for CDNL. The $28 million dollar CAMWATER contract is to install Redbirds for 14 communities. This contract will pay $28 million dollars to CDNL. Figure they are paying $2 million dollars each per community for enough Redbirds to provide water to the entire community in 14 places. The people running CAMWATER want to get ready for even more Redbirds in other places. So while they are getting CAMWATER ready to start they said to KJ and CDNL we want to pay you another $75,000 each to do the prep work for another 13 Communities we want you to do water treatment for. So they are paying CDNL $975,000 to do site evaluations and prep work for another 13 places they are going to want Redbirds.

So think this through to me it is very Bullish that they want to pay us almost a million dollars for down the road work. That shows me they totally expect the first $28 million CAMWATER deal to happen.


Second thought $2 million dollar per community and we are looking at another 13. So it looks like the $28 million dollar deal could turn into a $54 million dollar deal with another 26 million for the 13 new communities.

$28 million dollar deal
The contract calls for the installation of 35 CRB-20s at 14 communities in Cameroon, which will provide water for 72,800 people per day

New million dollar side deal for May

In follow-up to yesterdays Update on CAMWATER and Cameroon, we received notice for additional work outside of our existing contract. This work, which consists of Environmental Assessments, Feasibility Studies and Strategic Evaluations for 13 communities, will be paid for separately from the existing contract. We will start this work in May and anticipate a total value of $975,000 over a one to two month period.

$28 Million Dollar CAMWATER Project (For those who don't know about it):

http://www.cardinalres.com/media-center/press-releases/detail/76/cardinal-resources-28-8-million-cameroon-red-bird

PITTSBURGH, PA -- (Marketwired) -- 07/02/15 --

Cardinal Resources Inc. (OTC PINK: CDNL), a global producer of patented, solar powered, community-scale drinking water systems, today announced that following a recent series of meetings with Republic of Cameroon Government officials and international bankers on the financing of its $28.8 million Red Bird contract, the Company anticipates the contract will be implemented starting in the third quarter.

Completion of financing is the last remaining step to commence shipment of 35 Cardinal Red Bird Systems. Terms provide for a $4.3 million down payment to Cardinal upon financing, and staged payments throughout the end of 2016 and contract completion. To date, the Company has booked about $500,000 in deferred revenue from this contract for work required for the financing application.

Cardinal $28.8 Million Red Bird Contract
Cardinal's Cameroon contract was initially signed in late 2013, and the Government's Sovereign Guarantee issued by the Ministry of Economy, Planning and Development (MINEPAT) on April 30, 2014. The contract calls for the installation of 35 CRB-20s at 14 communities in Cameroon, which will provide water for 72,800 people per day at CAMWATER's target level of 75 liters/person/day. Also included are US manufactured water tanks, two mobile laboratories, distribution piping, service vehicles and other services. The contract was submitted to EXIM by MINEPAT on April 30, 2014 which triggered the start of the financing process.

The contract advanced in May with the completion of environmental assessments at all 14 communities, geotechnical foundation designs for the first site at Yaoundé, and the design of the distribution network for the first three CRB-20s. However, the catalyst for the recent breakthrough was the series of mid-June meetings, led by Cardinal CEO Kevin Jones, with Cameroon Government officials, CAMWATER, Standard Chartered Bank, and a U.S. Export Import Bank delegation. (CAMWATER mobilizes funds for water development projects and is involved in the construction, rehabilitation and management of drinking water infrastructure.)

As a result, EXIM has evaluated the application, environmental assessments, inspected the sites and the Company reports the financing package is now in the final review stages. Final approval of the financing package will begin the delivery of clean water to tens of thousands of Cameroon's people.

Dire Need Demonstrated
The Cardinal team met in Yaoundé, Cameroon with a senior team from the U.S. Export Import Bank at the location of the scheduled installation of three Cardinal Red Bird Systems to serve an area of the city lacking water infrastructure. At this site, the EXIM team witnessed how people currently are forced to collect water by hand from the river multiple times per day. Christopher Fobeneh, CAMWATER Director of Cooperation and Funding, noted, "Seeing the day-to-day impact on people clearly demonstrated the need to the officials from the US Embassy and the EXIM Bank. This visit demonstrated to the officials the importance of Cardinal's Red Bird System, and the project, to the people of Cameroon."

The African Council of Ministers on Water (Water Sanitation Program of the World Bank) 2011 report (with updates) states that approximately 6.9 million people in Cameroon lacking access to piped clean water.

Commenting on the Company's drive to bring its CAMWATER project to fruition, Cardinal Resources CEO, Kevin Jones, said, "We are greatly encouraged by CAMWATER's and EXIM's recent acceleration of work required to implement the contract to deliver clean drinking water to 14 communities in just the first twelve months. Beyond the current contract, CAMWATER envisions expanded Red Bird water system sale and distribution throughout the country as part of its ten-year strategic plan.

"It has been a longer process than initially expected, Mr. Jones added, and we are now cautiously optimistic of starting the implementation of the $28.8 million contract in the current quarter. We are confident that this contract is but the first phase in a much larger initiative to partner with CAMWATER to deliver and install far more of our world-class systems throughout Cameroon."