The large raising by GMD as part of the merger proposal is...

The large raising by GMD as part of the merger proposal is probably to build a plant equivalent to RED's because that's what SBM lacks.

SBM could just as easily sell off their overseas assets and build their own large plant and become a very profitable producer without needing to gift GMD half of the Leonora assets. They could've struck a toll treating deal with RED to process some of their ore until they'd built their own plant, thus bringing in some cash in a win-win for both companies in the short term.

RED needs to stay well away from these guys as GMD seems to be the big winner in both the DCN and SBM deals. They only started out with 2moz and no plant, yet now own 75% of DCN's plant and 2moz plus will get half of SBM's 10moz+ Leonora resource and a smallish plant that could probably be refurbished for the refactory ore and enough cash to build a new shiny Koth like plant.

I believe Hoover House will be a great success and will eventually roll in KIN and 100% of DCN, but the big winner from it all will be GMD, not so much their merger partners. RED would just be another part of a larger plan, but that would be a negative for current holders.

GMD holders are led by an aggressive and proven head, whereas it seems their merger targets aren't.

RED has everything it needs to be successful and may come under pressure whilst the sp is currently beaten down. Hopefully the board just gets on with the job of mining Koth and isn't tempted to look over the fence. Just follow through with the long term plan and if they see an opportunity to grab any closeby deposits at the right price, sure make an offer to acquire them, but don't give up control of the company to others who will be wanting to look after their interests before ours.