Ann: Maronan Metals Limited IPO - Priority Offer, page-49

Depends why you invested in RDM? If it was for the MMA project then once MMA lists (assuming 75M share issue) you have reduced your upside to that project by around 45% after receiving the free MMA options. To maintain the same leverage as you had under RDM then you would need to either increase your share holding in RDM by 90% or invest in MMA. You will receive a free option in MMA on about a one for ten basis of your share holding in RDM on completion of the IPO. RDM will receive 25M MMA options which will be distributed to shareholders and noting that RDM have roughly 240M shares on issue then that is around 1 for 10.

Once MMA is listed then RDM will hold AUD $15M worth of MMA shares at 20c issue price. Noting that RDM currently has a mkt cap of $23M then I do not see much downside from here. I believe MMA will outperform RDM in share price increase on any increase in the silver price and/or good drilling results.

RDM has the potential to become a takeover target down the track if a corporate entity wants MMA project as RDM have a minimum 50% blocking stake in MMA should a corporate move occur in the future. The easiest way to get a substantial holding in MMA is to take over RDM. Those 75M shares that RDM will hold will be very valuable in the future if MMA have drilling success over the next two years. I expect a silver price rising to at least US$40 oz over the next 2 years, so with a rising silver price and good drill results both RDM and MMA will do well.