only just got round to reading this...not sure how i feel about this transaction. Not a red flag yet (more like an orange flag) but its got me questioning.
good deal for the directors whilst the KGD shareholders take on the cost and risk...
Merchant Ventures Pty. Ltd. ABN 55 168 806 086 - has held the tenement (E 70/5452) from 11/5/2020 (WAMEX TENEMENT ID: E 7005452)
SENTINEL EXPLORATION LTD ABN 83 644 425 678 was registered with ASIC on 17/09/2020, and applied for an ABN on 08 Jul 2021
Currently Sentinel is acquiring 100% of Merchant, but that hasnt been finalised yet.
In the 2 and a bit years Merchant has held the tenement, who has paid for the work done to date? This ann makes it sound like Sentinel but i doubt that..
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"upon completing the acquisition for reimbursement of exploration expenditure costs incurred to date by Sentinel.
"expenditure incurred to date includes tenement acquisition costs, rates, rent, tenement management costs, geology consultants review of historical data and numerous site visits collecting samples"
so 2 KGD directors are engaging in a private transaction to acquire Merchant Ventures Pty. Ltd....and then onselling 70% of the project to KDG at an inflated price, whilst also being free carried for the work AND getting 12m shares AND $2m worth of script once a resource is defined
(20min delay)