Merleredeck No one is jumping the gun. All I am saying is that...

Merleredeck

No one is jumping the gun.

All I am saying is that in the event that MAE successfully sells Clear Creek instead of obtaining new funding a new scenario could be in play. The operative words are "could be".

The company's plan ( and TPG) all along has been to get Clear Creek up and running. Benefits such as a rerating would then flow to all shareholders and indirectly TPG. It would also make MAE a possible takeover target.

The failure to constantly meet production targets and any other not disclosed issues has now introduced new risks. With an sudden inability to relist and raise new capital MAE has responded with a change in direction now seeking either new funding or a possible sale of assets. That's the new state of play. The latest announcement indicates goodwill by TPG allowing a breathing period until end of August.

My speculation, pure non fact based speculation, is that if MAE sells its major asset ( and maybe Helper and Jester thrown in for good measure) then the company has the option of returning all capital to shareholders with no need to relist. That is no different to being taken over.

If that scenario comes into play my question is what impact does that have on option holders?

My understanding is that all new options granted to directors and others will have an expiry date two years from the relisting date. If there is no relisting will/can these options still be granted? If not, then all option holders may adversely be impacted with any return of capital. Yes directors and others would not be pleased.

My scenario above ignores the possibility that only Clear Creek is sold and part capital is distributed to shareholders and the balance used to develop Helper and Jester. Under this scenario MAE would relist and options issued. Good for directors, shareholders and all option holders.

Until MAE provides feedback regarding successful refinancing or asset sale we will be none the wiser on which direction the company will ultimately take.