This is clearly a way for MGL to gain a listing on the ASX and...

This is clearly a way for MGL to gain a listing on the ASX and obtain more capital to further the Otago prospects. MGL will also retain a 1.5% NSR royalty. The issue of shares to MGL dilutes SMI by 100% so that MGL receives 50% of SMI's resultant capital (prior to the $7.5M capital raising).
This looks to me as close to a backdoor listing as you can get without being a backdoor listing.
I have not seen an "uncut" statement of gold resources before and prefer to reference the 202 Koz of inferred resources at a cut-off of 0.25g/t (low cut-off though that is).
If we assign SMI today's SP of 0.3c (post proposed consolidation value of 21c), then the value of the MGL resource (ignoring any value on the NSR) is $39.7/oz based on 38,189,017 shares being issued to MGL.
That is a pretty good price for an inferred resource at such a low cut-off value. On top of that we need to add the value of the existing SMI tenements and resources. Since SMI has been rated at 0.3c for quite some time, we can basically double the price for MGL's resources to $74.9/0z but of course, it is not a cash payment and MGL shareholders retain the same ongoing risk as SMI shareholders.
All the same, that seems a pretty stiff price to me.