Fair point: the key actor here is APAC Resources, and the main...

Fair point: the key actor here is APAC Resources, and the main point is that they are a large shareholder, and therefore probably relatively well informed, and they are buying more.

MGX's director "only" owns 75% of Allied Group which in turn owns "only" 36% of APAC Resources. So Mr Lee's exposure to MGX is not rising as rapidly as it might appear.

But it's hard to imagine that APAC is acting entirely independently of Mr Lee, who effectively controls about a quarter of the company, and is buying a company of which he is a director. Even if the director relationship were not present, it's significant that a larger shareholder wants lots more shares. As septic notes, they're basically buying as much as they are allowed without doing a takeover (which would likely push the price up robustly).

It's undervalued, Mr Lee/APAC are playing the long game stocking up gradually without provoking a price spike.