GML gateway mining limited

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it’s an interesting take as GML essentially received $14 million...

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Cigarsmoker59

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30/06/25

20:21

Post #: 79628806
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Originally posted by MRRC: ↑

Yes-this is a major dilution for existing GML shareholders.

Gateway Deal Leaves Existing GML Shareholders With Just a Slice of the Pie
If you’re a Gateway Mining (ASX: GML) shareholder, you might have just experienced one of the more “creative” forms of value transfer on the ASX — and not in your favour.
In a deal announced on 30th June 2025, GML is issuing 1.5 billion new shares (via convertible preference shares) to acquire Strickland Metals' (ASX: STK) Yandal Gold Project, priced at $0.03 per share — a hefty $45 million valuation based on VWAP.
Here’s the kicker:
Over 78% of GML’s post-deal shares will be owned by Strickland and its shareholders. GML shareholders — the ones who’ve supported the company up to this point — are left with just 21% of the expanded company.
It gets better (or worse):
63% of GML will be handed directly to Strickland shareholders, via an in-specie distribution.
15.7% will be retained by Strickland itself.
You, the long-term GML holder? Your stake just got heavily diluted.
Yes, GML gains a decent gold asset (8.17Mt @ 1.52g/t for ~400,400oz Au), but it comes at the cost of control, ownership, and equity — and it’s being delivered largely to investors who've never owned GML until now.
So, Who Won?
STK Shareholders: Big winners. They receive shares in a company they never invested in, now owning the majority of its register.
GML Shareholders: Left with less than a quarter of the company they funded and supported — and no say in the deal before it happened.
The Takeaway
This transaction might be dressed up as a growth move, but the structure tells another story:
existing GML shareholders have been diluted and sidelined — without even a vote.
At the very least, it's a lesson in watching who really benefits in "strategic acquisitions."

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it’s an interesting take as GML essentially received $14 million in script and cash for 500,000 ounces from BTR

and is now paying $45 million for 400,000 ounces from Strickland

Is the proximity to the NST mill and potential buyout down the track worth much? Langworthy has a history with NST too.

What you say is correct re the calcs. Whether it’s a good deal I cannot say

GML Price at posting: 2.7¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 2.7¢		Change 0.002(8.00%)		Mkt cap ! $11.03M

Open	High	Low	Value	Volume
2.6¢	2.7¢	2.6¢	$16.14K	612.6K

Buyers (Bids)

No.	Vol.	Price($)
2	484614	2.5¢

Sellers (Offers)

Price($)	Vol.	No.
2.7¢	520294	2

View Market Depth

No.	Vol.	Price($)
2	484614	0.025
3	1183333	0.024
2	1069565	0.023
1	95238	0.021
1	49750	0.020

Price($)	Vol.	No.
0.027	520294	2
0.028	318520	2
0.029	500000	1
0.030	500000	1
0.031	559357	2

Last trade - 14.02pm 25/07/2025 (20 minute delay)

GML (ASX) Chart

it’s an interesting take as GML essentially received $14 million...

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it’s an interesting take as GML essentially received $14 million...

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