Thanks Boston for the great deal of info you provide
IMO I'm not sure that the ASX need to qualify the validity of contractual arrangements between different companies. That's not their job. They assume that any public company have the skills required to do their own due diligence and publish sensitive info accordingly. They are more interested in public companies complying with ASX rules.
I am also suspecting, as I have mentioned a few times, that this company have far more technical ability than commercial ability. I would not surprise me to find out that they did not do any due diligence on proof of funds as fundamental as that should have been. More likely that Varmco just wrote a letter on their own letterhead to the effect that they could pay and that was accepted!
The other point that mystifies me is if the price differential is so different on the USA market compared with the ASX taking currency into account why is there not arbitrage opportunities? ie sell USA market and buy ASX market.
What is the effective price in Aussy dollars on the USA market as at end of trading yesterday?
MXC Price at posting:
7.4¢ Sentiment: None Disclosure: Held
