Ann: Company Presentation -, page-119

Good point you have made there Crom Valen in the above post, real food for thought ! Would they comply or even be considered in possession of price sensitive/"insider" information as defined by ASIC a month prior to a CR? A big Mmmmmm .....

After all, how long before the preferred Brokers start discussions with a company prior to a CR? Probably weeks before, could be greater than one month even. So IMO they would have knowledge, or they have assumed that their services will be used for a CR.

Are we are are we not having a CR here at present? IMO, I dont think so.

But, we have all been surprised before.

Why would I feel that a CR is just not required at present. My reasoning, look at the stats from Robs last presenbtation in Perth his week, the stats inserted below.

1. Cash on hand 30th June, plenty.
2. Securities held, a nice packet there, I wouldnt mind them, $2M +
3. I feel we are cashed up sufficiently for the remainder of the year, at least.
4. With an updated JORC which will include significant Oz's from Starlight coming next month, I would raise at a higher MC.

However, I can forgive those believing that a CR is due soon, even though a similar pattern has emerged from the last CR in March 2020. However, it doesnt mean that a CR is imminent, unless of course the previous Brokers believe that it is going to happen, and consequently are pushing the price down in anticipation, as happened in March/April this year.

A chronological sequence as to what happened during the last CR, look at the chart to the right hand side below as we go through it:

March 23rd, SP pressured down to $0.07, a month before the CR.
April 23rd, Trading Halt, CR, SP now at $0.115
May 4th, Canaccord & Veritas are thanked for their work. They receive 6% of the gross capital raised.
The SP is now $0.115 and the shares are offered at a discount of 8.7% as of the SP at May 22nd.

A closer look at the chart when it was pushed don to $0.07 a month before the CR. Was someone Accumulating, perhaps knowing a CR was coming? Mmmmmm ...

And thanks 'elshroomo' for reminding me it was Patersons, as I was wondering from the Appendix notice issued by MGV after the placement. A snippet from that below ....



I am a slow learner, but it is Patersons from what I worked out after double checking, I am not up with "who's up who" in the corporate world these days.



So if the history is of any use to us, it does appear to follow similar paterns of earlier this year.

Do I believe yet that a CR is imminent? No.

'Boiler' ..... you mentioned a CR of 50M shares @ $0.50 ..... Crikey, thats $25M, are you a Mate of Rob's and going to split it? !!! LOL Nup, they wont be doing that IMO. Why you ask?

1. Still sufficient cash for 2020.
2. That would be Dilution, dilution dilution, I dont think the MD wants that.

However, lets say, hypothetically, they did do a CR of some sort, a small one, say $5M @ $x.00, for whatever reasons, how might they benefit, or use that?

1. The MD has indicated that they will be moving into Development Studies in the next Quarter.
2. What would that entail, say to a small PFS, a few consultants with big $ tags. Not huge amounts.
3. An open pit, strip estimate for removing overburden to hit the rich material 2m below surface.
4. A small amount of extra cash to cover the cost of Road Haulage to the first available mill.
5. To cover early costs to the Third Party for processing.
6. A small Camp established on site for the early Mining workers/contractors.
7. Certainly not a big CR as they will have established a great Cash Flow just metres below the surface.

So I wont say it is impossible that a msall CR might not happen.

What alternatives are there to a CR for such a msall amount?

I would go for an underwritten (?) Bank Loan, what with interest rates of small single figures, so easy !

So what are everyones else's thoughts?

As you stated earlier 'Crom Valen' ......Obviously the troops are restless over a percieved lack of newsflow, and it makes for fertile ground for conjecture and conspiracy therories.

Some are even grabbing that bat & ball and running (selling) off, so peeved. I pity them. The news will arrive when it arrives, not before.

Some are even screaming beyond belief, what arent these 'overdue results' released? If (ASXEG) can do it, why not MGV, how silly! DEG use a different Lab to MGV, and they dont even tell us who it is in their JORC Statements, see blow, perhaps wise, as others might consider their Lab. But NO, mgv use Genalysis - Intek, the best and most reliable, economical in WA, and do I know that from my own experinces having had to pay out of my own pocket.

Ah, Cash is King, and MGV are on the road to achieving just that IMO.

GLTAH

Cheers ............