Also, you get shares spun out into their graphite shell game as well. So basically what's happening is, you take your graphite projects no one loves, and get them tossed into a new vehicle.
Meanwhile, some new guys who own a company with a deal sewn up to demerge the IGO gold assets at Sylvania (a deal which they cannot pay for) hop in your original beat up bomb of a vehicle, take the wheel, load some money into it from some other mates (or themselves, dunno yet) and drive off down the road.
You end up with your original share in the MGY graphite play, and a free half proportion of the Sylvania story. So, in essence, you are getting a free toe to dip in Sylvania Au pool by just happening to own shares in a shell ASX listed company that some entrepreneurs wish to put the foot down and do circle work in a paddock with.
This costs you nothing.
Well, except that you'll be diluted to buggery in the gold company, as it goes about raising wads of cash to drill up the Au. But you can just flog it off the moment you get your shares in the graphite spin-off, and make bank.
Sounds like a good deal to me.
MGY Price at posting:
6.0¢ Sentiment: Hold Disclosure: Not Held