"In addition to this kind of standard project finance, Alkane expects to conclude a strategic investment by sovereigns and key product end-users by year-end to purchase 10-15% of the Dubbo Zirconia project; that event alone will force a significant revaluation of the entire company. Alkane is also in talks with various entities regarding Export Credit Agency debt facilities, which amount to substantial sovereign institutional loans on favorable terms for large projects deemed to be of strategic importance."
Alkane is looking to fund the Dubbo Zirconia project through a combination of Export Credit Agency (ECA) loans, strategic investments, standard commercial project finance and a potential equity raising. . .Alkane's product suite has also put it in an enviable position in terms of securing standard commercial project finance for a portion of the required AU$1B. Generally, such finance is tied directly to offtake sales agreements, and to date Alkane has reached agreements with Austrian powerhouse Treibacher Industrie AG (private) for the purchase of the first five years of the Dubbo Zirconia project's ferro-niobium production as well as a Memorandum of Understanding (MoU) with Shin-Etsu, Japan's largest chemical company, to toll treat Alkane's HREE and LREE chlorides with an option to buy any or all of the products. Negotiations continue with more than a dozen Japanese, Korean, North American and European companies for the 14–16 tonnes of annual zirconium compounds Alkane will produce. Once the zirconium compound agreements are finalized, the size and scope of commercial finance package will be determined."
"Alkane's Definite Feasibility Study of April 2013 shows Dubbo being a 'technically and financially robust project.' A base case of a 20-year mine life gave a net present value of $1.23B, yet mine life is likely to be in excess of 70 years, which makes this deposit an important strategic asset for REE world supply. What makes Alkane a great investment today is that shareholders do not have to wait two or three years until REE production at Dubbo starts; shareholder value is likely to be increased substantially within the next few months as construction on the company's Tomingley gold mine is underway and commissioning is anticipated in late 2013. With a resource of 800+ Koz, a head-grade of 2 g/t, a yearly gold production of around 50 Koz for a minimum of eight years and operating costs at only $1,000/oz, this project is set to generate important cash flow in the near future to advance the Dubbo project successfully without the need for excessive dilution."