an update is coming

In response to the following email:

"According to the March QR (top of Page 4) assay sampling results for the Magrama Camp Prospect were 'expected by the end of March 2013'. As a shareholder I had an expectation that those results would be made available to the market. In the absence of any results can we conclude that the assay results were of no value.

With a cash raising becoming imminent, a flow of news, would as a minimum, give shareholders the knowledge that some activities are in progress. Like other shareholders, I have noted that there has been little progress by MGY, excluding the JV activities, over the past year despite the consumption of circa $1.5m. Indeed the March 12 QR has many similarities to the March 13 QR in terms of status of the MGY owned projects.''

MGY Mangement has advised by phone, that;

. an update is planned for next week;
. the assay results delay is due to an extended drilling program; and
. the Update will cover all MGY projects including the JV.

When asked about fuding for the JV commitment - three or so options are under consideration with preference not to dilute shareholder value - all details will be in the next QR.

Understandably, MGY was very circumspect with their comments, so there were no leads detected that would lift the SP but I do note some positive trading activity today (30 May).

My speculating on the three possible options (MGY gave no hints) are:

. assuming MGY has discovered a graphite ore body of its own giving the JV partner (Energizer) a % as an offset to the forthcoming 25% funding commitment.
. reducing the 25% commitment to say 15% as an offset
. selling some/all of the Energiser holdings

Another possibility would emerge if MGY has discovered an ore body (copper, nickel, ???) and got a JV to participate with a cash injection that could then be used to fund the Energizer commitment.

As I am sure that there are other possibilities, please DYOR

Cheers

R1