Ann: Proposed Issue of Securities - Updated, page-33

Hi Gammat,

The liquidity issues is mainly caused by the ownership of the major shares.




As you can see 76% of the company is held by 6 shareholders. Simto Resources is the former CEO's shares. Have you seen a company where 6 shareholders own so much of a company? I cannot say I have ever seen anything like this before.

The main issues with MRC is a lack of marketing, I don't think MRC has really bothered with marketing while MVC was selling his shares. Although it doesn't appear he has sold a single shares for a number of months, which might explain why Scott has now started marketing.

The other issues is evident with the mineral sands project, it has had issues processing the inland strands mineralisation, which recommenced in March 2023. MRC has clearly stated the issues they have had over the past 6 months, with break downs and the water inlet issues (Sea water is used for processing). MRC detailed they have resolved these issues and are looking/have made the improvement to give a more consistent water supply.

The other issues have been the many legal issues, MRC did own 90% of the Skaland Graphite project, They have now moved to 100% ownership and ended the legal issue.
MVC took MRC to to the take over panel for the last CR, which stopped AU mining being the underwriter to take up the short fall. This was a major mistake by MVC as the company is now raising the funds they requred back then at a ~50% discount.

Anyway. I hope that helps you out with understanding the share structure and the reasons why there are so few retails shareholders involved to increase the interest in the company.

BTW, around 50% of the company is owned by AU Mining and his exwife. When you see him investing $5mil up front for the CR you can understand why I have no concerns with the lack of interest from retail investors.