Ann: Term sheet executed for spin out of nickel assets, page-34

No need to complicate this transaction.

NICO day 1: 65m SOI, $8m cash ($4m contribution from MLX, $4m contribution via IPO participants).

MLX holds 20m shares (+25m options), IPO participants 20m shares and an in specie distribution to MLX existing holders of 25m shares.

The deal is here nor there - this is about creating a vehicle in which hopefully the market values the massive Nickel Cobalt asset that is Wingellina... cos it sure ain’t getting valued at anything above zero sitting inside MLX. It also allows MLX to focus and become a pure play tin producer.. 2+2 = 5 right?

My hope is that upon listing the shares trade closer to peers (AUZ, SRL, ARL, HZM.L et al) - and this to me would be circa 60cps for an enterprise value of A$32m (of which A$26m would sit with MLX/MLX holders distribution).

The deal’s not going ahead until September so comments around ‘maybe this is why they didn’t repay debt’ are completely misguided IMO.