Ann: Proposed issue of securities - MKG, page-33

Management now paying themselves in shares at 1c is in effect a massive pay rise when you consider they will now be taking huge amounts of equity at the lows from capital that was raised btw 3c and 20c and used to drill out the resource. I consider it equity theft and a coup-de-grace on S/H given all the bad decisions taken to get us here.

Another problem with this, like the drill-for-equity, is it incentivizes a low share price for an extended period in order to get as much of the equity as possible. Maybe when they get to 30% and they need capital that they will not want to provide they might make a decent discovery to spike the share price up and then raise capital at higher prices from 3rd parties. What was that project area that had high grades but they decided not to drill it yet?

Faces in the trough. All ought to have taken 30-50% pay cuts in real terms or resigned so the company has a chance of restoring confidence in a new team. Shameless.