Ann: Completion of Accelerated Institutional Entitlement Offer, page-2

Well it looks like MRC has successfully raised the full amount from the institutional investors, reaching the $5,065,508 target.

I didn't notice in the prospectus, that the letters of commitment from the largest shareholders had reduced from $7.9 Mil down to $2.86mil.




There is no explanation in this ASX announcement or the prospectus to explain why it had reduced by ~$5mil.

Going by the entitlements of the major shareholders Tormin still has significant ability to take up its full entitlement of $5mil. ($3mil spare) Tormin has $1.25mil



The prospectus details that AU mining isn't allowed to take up any of the shortfall. if the major shareholders still invest the $7.9mil as indicated in Thursday's ASX announcement, MRC would raise $12,991,187 out of the proposed $15.03mil. Leaving only $2.04 million to be raised by all other shareholders.

I highly doubt Simto Resources will be chipping in any of the $820k that they can apply for, but it appears the institutional investors have this amount easily covered, It will be interesting to see what happens to the SP in the coming days to see if we have another push down below the CR price which will prevent retail shareholders from taking part in the offer.

Anyway, the good news will be, after the CR we will no longer have Simto Resources as a substantial shareholder. It would have been nice if MRC would organised the institutional investors to buy out MVC if we see the offer fully/over subscribed.