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I declare my clear conflict of interest insofar as I own both stocks.

I bought CUO by virtue of my knowledge about the project gained through MXX (formerly MSX). There has been some criticism of MXX management but I do not believe it is justified. I am unable to think of one thing they have not done right based upon their business model of bringing new low risk projects to fruition through sourcing the prospective exploration tenements and over an extended period of support, shepherding the IPOs to market, recruiting excellent management etc.

I do think there have been backroom discussions about how to maximise value from their assets (and CUOs) as markets have failed to properly attribute an appropriate share price to either CUO or MXX....and bearing in mind the excellent growth and diversification opportunities that the merger affords. Independent directors have promoted the deal.

The questions remaining in my mind are which of the non-core assets will be disposed of, and how else might the likely increase in exposure to Platmin and other projects like Lady Loretta be funded (apart from internally generated cash). While I know the expenditure of surplus cash flow in the merged entity on new ventures involves more risk, but I respect the management to evaluate that risk/return to give us a very good outcome. What I am concerned about is further dilution through placements etc to investors who have not taken the risk (a la the recent 54 cent placement).

If CUO shareholders on this forum get behind the merger I can see the SP appreciating as the vote date approaches. But if there is a lot of dissent it only playes into the hands of those who wish to take advantage and pick up CUO shares at a discount to fair value.

regards
DF