The founding shareholder in GULF who has decided to take up the MMI takeover offer has made a big mistake in my opinion. Or has he? MMI get a circa 20% of GULF and the founding shareholder of GULF can now finally find some liquidity for his investment (ever so slowly). He now has tradeable shares in MMI. Only 50 million plus shares.
I've also not seen any Appendix 3B for this new issue.
If this project of MMI is so good and real why hasn't DADI or SinoCoal put their hand out? Or even Xinfa. The money that MMI is looking for chicken feed to these guys. Remember that DADI was happy to put in over $25m into then Metrocoal's bank account for a circa 20% holding.
SinoCoal, state owned Chinese company has plenty of cash too.
So with such a strong FS and short pay back, I would've thought that DADI, SinoCoal or Xinfa would be keen to participate and/or even provide the finance for MMI to make all this marvellous cash they state in the FS.
DADI, SinoCoal and Xinfa could form a triumvirate and all get their money back in a couple of years.
This just tells me that it's all BS and none of those major shareholders believe in management or the Board.
JMT
MMI Price at posting:
5.9¢ Sentiment: Sell Disclosure: Not Held
