mmx considering taking legal action against, page-7

I suggest CHM holder look at the history of their directors - try a google search for each and see how many shady undertakings they rack up between them, and how many times they have been investigated.

In regards to the claim for the tenements. If you go back to the first MMX ann back from 1 April 2005 you will find this:

"Funds raised through private placements in October and February enabled Murchison to complete the acquisition of 100% of Jack Hills Tenement E20/535 and E20/552 through payment of A$0.55m to the vendors on 25 February 2005.

The exploration license for E20/535 was granted by the WA Minister for State Development on 24 March as expected after the four month objection period passed without dissent. This now allows the company to commence work on the lease.

Furthermore Mining Lease M20/506 has now been pegged and applied for and granting is expected after a four month objection period."

Sounds like they dotted the i's and crossed the t's to me. CHM can only have issue with the vendor who sold the land if they had no right to - and given the value of only $0.55m at that time CHM won't even cover their legal costs. What a bunch of losers.

Now if I was a holder I would be careful. Your directors will have a big holding for next to nothing because CHM have nothing except this impossible dream. Given their history what do you thing they will do?

I have a few likely scenarios that are very likely:

1. They will talk this up. There will be a run due to false hopes, all the while directors (or more likely directors "mates") will be offloading their shares at massive profits. They know this is doomed and will be dumping their shares on you, that will shortly be worthless.

2. They (and "mates") have taken out short positions on MMX/MIS and when panic mode really hits hard they will close those shorts prior to the action failing (which it is doomed to do).

3. They (and "mates") will take out long positions on MMX/MIS just before the action fails and make a killing.

Any of these actions should put the directors behind bars and as for your "investment" - forget about it - just thank your lucky stars that as a shareholder you will not have to pick up the tab for the soon to be successful $500m counter-suit against CHM and directors.

If you want to put your money somewhere useful - sell CHM before the innvitable plunge back to less than 1c and put the money into MMX shares which have been greatly depressed way below their real value and will bounce back strongly.

Remember that even if CHM are successful - what could they get - I'll give you a hint:
- 50% of $0.55m which was the value around the time CHM are disputing.
- about 1% of the operation - remember that a completely free carried company (which CHM would be because they are BROKE) from the start of exploration right through to production would be lucky to get 1.5% royalty - and CHM would only be able to even claim half (a JV stake if they owned half) of this - or about 0.75% or less.

A wild ride - and it is the CHM directors which are taking you for a ride.