I dont see LG buying any shares as they have no cash.
They have stated in the Bidder Statement that they were planning to sell $SGD40,000,000 of assets to finance the gold panning operation but this has not eventuated.
They have reported an initial gold pour in one of the African sites (Mali I think) but that was back mid last year and no further news.
They have to pay Mornington Offshore for the Mali leases so maybe their initial gold pour was a bit premature (i.e. It was not their gold).
I have not seen any information regarding the $5,000,000 Inifiniti poured into SBL and where LG are going to repay this money, they have received the shares (see the initial substantial holding notices).
Someone still ownes about another $4,000,000 for Konogo (SBL only ever issues 50,000,000 shares to Alpina Group - see Top 20 back in 04/11) with the rest payable on mine performance.
I have never seen a notice to say that Alpina is no longer a substantial holder which is quite strange as they no longer appear in the top 20......
This story can go on and on, hopefully Weiss have the guns and the guts to call LGs play as I think that they have no substance.
Our issue is that while all this is going on, we are hoping that the mine is producing gold (and being managed) to a level that it is self funding.
Unfortunately we are the jam in the middle of much larger games at the moment with a board that does not provide any info (any positive news may stop people taking up the LG offer).
LG will issue new script sometime in March but I think they can extend the offer period indefinately if they so decide.
This is more like a Luna Park ride than a gold mining company.
SBL Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
