I wrote to Seamus as I said I would. He called me today to discuss the situation. He doesn’t want to get the asx offside by announcing all the difficulties they have faced and the conditions asx have placed to allow the suspension to be lifted. Seamus told me the conditions and I agree with him that they seem unmanageable at this stage.
Seamus seems quite excited about a copper/ gold project in Eritrea that he thinks they will be granted in the coming months. It does sound promising.
They can’t simply wind up the company and distribute funds as many have suggested. One of the conditions of the sale of Kali was that DNK are liable if any of their info to the Chinese purchasers was incorrect eg drill results. They basically have to continue to be a company for 4 years after the sale was signed. The Chinese were limited in the due diligence they were allowed to perform so they needed DNK to be liable for any misrepresentation.
DNK are looking at listing on the NSX. This is another Australian platform. It’s not ideal, liquidity is usually very low on the NSX however Seamus thinks some liquidity and an ability to buy and sell our shares is better than no liquidity or inability to buy and sell. He understands its not ideal but getting the ASX to allow them to trade again seems unfeasible. He believes when people learn about the new project ( assuming it’s granted ) there will be plenty of people willing to buy our shares on the NSX. Some brokers trade on the NSX and apparently some of the online share trading platforms allow NSX trading so it will mean we will have to fill some paperwork and do some work but we should be able to trade. Seamus is also planning to run a buyback for small shareholders eg who can’t be bothered with setting themselves up to trade on the NSX.
Since DNK has been suspended for 20 months I havn’t kept a close eye on it as I can’t trade either way. I was however pleasantly surprised with my phone call with Seamus. It appears that they are doing their best to look after retail shareholders but unfortunately they have faced a lot of hurdles that are out of their control. I got the impression that Seamus is doing his best and is trying to look after us otherwise they would just delist.
In summary.
They can’t wind up the company for at least 2 more years or are liable to pay back the money.
The conditions placed on them by the ASX seem too difficult to allow suspension to be lifted.
They will probably re list on the NSX to allow an opportunity to trade rather than de list all together
The project they are looking at appears very exciting at this early stage.
Seamus is wary about getting the ASX offside.
Seamus has also said he is happy to speak to shareholders directly if they want to contact him.
The above is as accurate as I can make it based on my phone conversation with Seamus but I take no responsibility for any inaccuracies.
GLTAHs
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