I don't think there is any doubt Diversified Metals Holdings LLC...

I don't think there is any doubt Diversified Metals Holdings LLC is a special purpose vehicle. But someone must own it. LLC suggests a US vehicle but I wonder if it has ties to Australia? I wonder what the Board's DD turned up?

Under the terms of the placement announced in April, the lowest price shares can be issued to DMH is 1c (below that the Board can pay back the funds advanced). The total placement deal could be $6.78m which at 1c/share becomes 678m shares. The current rights issue will blow out the total number of shares on issue but even so, 678m shares will be a big slice of the company. Will that deliver DMH effective control?

If it does (and I am ignoring the impact of any other capital raises should the company actually have a project to develop) there will have been no opportunity for existing shareholders to sell out and certainly no premium for them. In fact DMH's entry price will be at a discount to the 5 day VWAP. What a deal for shareholders.