Because of the progress being made with both the BBM project and the finalisation of the BBM financing package, Platinum has agreed to advance the additional funds to ensure progress is maintained on the project while the final steps of the BBM financing documentation are put in place, the company said.

The total loan for the BBM project development now stands at $US9.1 million.

These funds will enable work to progress on the detailed engineering and final design to progress and complete the preparation work necessary to enable site based construction to start promptly once the BBM project financing is finalised.

Cokal has agreed to extend Platinum’s exclusivity period to October 6, 2014, to finalise the project finance agreements.

Repayment of the first loan has been extended with the total loan of $US9.1 million now repayable within six months of receiving the additional loan funds.

The total loan can also be rolled over into the BBM project financing facility once it is in place. As previously announced, the proposed BBM funding package included the proposed grant of 100 million warrants with an exercise price of $A0.20 and an exercise period of four years from the date of grant.

Cokal will grant 15 million of these options following drawdown of the additional loan. The intention is that the balance 85 million options will, subject to shareholder approval, be granted once the BBM project finance is finalised.

The options will be exercisable at any time before expiry. The options will not be listed but will be transferrable.

Payment of the exercise price may be satisfied by the holder paying the exercise price in cash or causing the provider of the bridge loan or project finance to reduce the principal owing by the amount of the exercise price.

Shares issued on exercise of an option rank equally with all other ordinary shares then on issue.

If trading in Cokal shares has been suspended for more than 10 days in any 12 month period or if Cokal is delisted or its substantial assets privatised, the option expiry date will be extended to eight years after the date of grant.

Customary provisions apply in relation to the adjustment of the option terms in the event of capital reconstruction, rights issues or bonus share issues.