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Don't worry people, ASIC is on the case, a regulator that...

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eastwest101

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05/07/24

18:27

Post #: 74631201
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Originally posted by ValueSeeker1: ↑

From the Advocate, a second shareholder has now approached FIRB:

An Avebury Nickel Mine sale deal thought to be for much less than previous offers that were not accepted should be investigated and blocked, a big shareholder has told the foreign investment watchdog.

"Why were the bids received in October-November 2023 of $US100 million and a cash bid of $80 million in March 2024 rejected for a cash bid of $803,000 and a credit swap that seems to be made to a related party of the purchaser?" prominent businessman and investor Marc De Stoop said in a recent letter to the Foreign Investment Review Board.A

"I have no hard evidence and make no imputation about anyone, but these steps do not pass the sniff test initially and need investigation before FIRB approval is given."
The West Coast mine was put on care and maintenance earlier this year.More than 200 West Coast workers lost their jobs, with shareholders and creditors in limbo.It followed mine owner Mallee Resources Limited going into receivership after its key lender and offtake partner, international metals trader Hartree Partners, last year refused further extensions to loan repayments.

"I object strongly to the proposed acquisition by Hartree MI UK Limited and related parties of the business and assets of Mallee, an Australian company," Mr De Stoop told the FIRB.Mr De Stoop - a top five shareholder in Mallee - expressed various other concerns,.He asked the FIRB to delay approval of the deal until it and/or corporate watchdog ASIC had considered a submission from lawyers for another big shareholder, Tasmanian businessman and Mallee director Geoff Summers.Mr Summers - who made the $US100 million and $A80 offers - wants a Senate inquiry or royal commission into the situation.He argues the mine would be running profitably now had his first bid been successful.

Mr De Stoop said Mr Summers was well credentialed to keep the mine running."How can it be in the national interest to allow Hartree to close the mine?" Mr De Stoop asked the FIRB."I therefore request you reject the Hartree FIRB application."

Mr De Stoop said he loved the Mallee project because it promised to bring life back to Zeehan."I have visited Zeehan several times and Avebury Nickel Mine is absolutely essential to the town's prosperity," he said.He said the closure had devastating consequences for the workers, the town and Australia's supply of critical minerals. Mr Summers understands the current deal significantly undervalues Avebury.He recently indicated he would be keen to acquire the mine and return it to production.Mr Summers estimated a restart would cost about $100 million, on top of the purchase price, and take at least a year because of the need for a new tailings storage.

Tasmanian Liberal Senator Jonno Duniam recently said: "Any loss of jobs in Tasmania is a tragedy and I will be closely watching the outcome of any inquiries made to federal authorities."

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Don't worry people, ASIC is on the case, a regulator that couldn't regulate its own bowel movements let alone the broad remit of corporations law.

As for the administrators of McGrath Nicoll - as any A40 shareholder would tell you, you could drive a dump truck through their transparency and corporate ethics.

If you think Myanmar is the wild west of corporate responsibility have a look at Australia with its "regulators" of ASIC and APRA,

MYL Price at posting: 70.0¢ Sentiment: None Disclosure: Not Held
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