MSC have just announced yet another capital raising for the predictably vague term "working capital" .
For those who might wonder what this means read "money to keep the directors in clover & and to fund continual stuff ups and poor business decisions "
Here they go .........another "opportunity" for shareholders to buy extra MSC shares at a discount .... due to popular demand !!!!.
Alexander says in his letter to shareholders dated April 5 2004 ....."we've raised "over 30 million over the last few years ...... equity finance and debt finance my guess is the figure is closer to 40 mill"
Refer also to the press release dated June 28 2001 !!!!!!.
As I said in earlier posts any one who is remotely considering this company or who still holds .....take a browse thru some of the announcements ...... they range from "plant fully commissioned" to "first sales achieved" to "contracts in place for 90% of production"....it won't take long to reach a conclusion.
PRESS RELEASE 28 June 2001
CAPITAL RAISING PROGRAMME FOR THE SKARDON RIVER KAOLIN PROJECT
Minerals Corporation Limited ('MSC') is pleased to announce it has mandated both APG Financial Services Limited, (the corporate services arm of the Associated Planners Group), to raise $10.0 million by prospectus issue and, Meridian International Capital Limited to arrange $10.0 million by way of plant leasing facilities. The $20.0 million provides the project with adequate funding to take the Kaolin business into projected operational profitability in year 2 from start-up of regular production. Production is planned to commence in the fourth quarter, 2001. This raising also includes the payout of $5.0 million in deferred project acquisition costs due to the vendors.
The above proposed capital raising is subject to MSC shareholder meeting approval. The proposed prospectus raising is for the issues of three-year term Converting Notes, which convert into MSC equity at maturity date at a 10% discount to prevailing market price of MSC ordinary shares. The proposed ASX listed Converting Notes carry an interest rate of 11.5% per annum payable quarterly in arrears.
C V Alexander CHAIRMAN
MSC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held