The Linden Gold IPO still hasn't been released so it looks likely there will be yet another 3 month extension or cancelled altogether. Not a great time to float on the ASX, especially a gold company.
Linden has the right to pay $12m cash to MAT and not list, which may yet be a better way to go for them. Maybe safer to remain a private entity until the market is in an upswing.
SBM lent Linden $16m to fund the upfront cost of mining Second Fortune and is processing and purchasing the ore at their Leonora plant and the companies have signed an MOU regarding ore from the Devon Gold Project.
There must be a strong possibility of SBM taking a stake in Linden to help them pay MAT the $12m rather than trying to float at the moment. Second Fortune produced 11.5koz in the 6 months up to March 2022 and have since paid MAT $3m which they will lose if the deal doesn't proceed, plus they've been covering any Red October costs on top, so it will be a big loss for a smallish private explorer to cover on top of paying back the SBM loan.
Was the recent MAT raising an acknowledgement that the deal is about to be extended yet again? The company would have a better idea on the status of the IPO, so it would seem they don't expect to receive any large cash injection by the end of this month. I guess MAT will be required to update the market regarding the Linden deal in the next week.
MAT Price at posting:
3.8¢ Sentiment: None Disclosure: Held
