Ann: Resolution to Devon Joint Venture, page-8

Pretty good outcome for MAT as Linden get their $4m back if/when MAT mine or sell Devon, but they don't get back the cost of the bfs (which MAT doesn't accept) or the 3000m of drilling they recently completed.

For Matsa, they have a mining study even if they don't consider it up to scratch and Devon drilling results due soon which they got for free.

Anglo has paid $500k to dewater Red October and undertake due diligence on the Lake Carey Project so now the full 930koz endowment is available for consideration in any deal struck with MAT. As Anglo has a plant about 40km away, toll treating, profit sharing or even an outright sale becomes possible.

2 years ago Linden struck a deal with Matsa worth $20m on the purchase of the Red October and Devon Gold Mine. That deal fell over when Linden wasn't able to get their IPO over the line.

That was a good deal for Matsa at the time as MAT still retained around 550koz within the larger Lake Carey project area. The smaller deal struck 12 months ago was never anything more than a short term cash grab by MAT imo as they had no plan B in place in case Linden didn't manage to list on the ASX. At the time the $4m debt was due to be paid and MAT needed money quickly, hence the upfront payment by Linden of $4m, to be paid back out of the mining profits of Devon.

As it turned out, MAT negotiated to delay the debt payment again, therefore kicking the can further down the road at a cost of $500k interest per year.

That left Matsa with cash to spend, which they did and soon found themselves needing to raise yet again, but now they had $4.5m debt (including interest) and $4m owing to Linden, and now a new short term debt announced in the latest quarterly.

An Anglo deal at anything like the original Linden deal is required so Matsa can clear all debt (now around $9m) and have enough free cash to do something worthwhile themselves to add value to the company.

Living hand to mouth doesn't allow the company to explore adequately or expand, which they used to do very well a few years back. Part of their success was from not needing to issue shares to raise cash, they developed projects to a point where the assets were valuable enough to sell to fund further growth.

MAT had a large share of BNR, sold off at lows. 20m LTR shares swapped for a project, sold off at .03 to help fund the failed attempt to mine Red October. Plus shares in other companies that were used as a means of avoiding share dilution. In fact MAT went about 4-5 years without needing to dilute holders, but now we have the double whammy of a very low share price and all other saleable assets sold off other than our main gold projects, so only small inadequate amounts of cash is being raised for larger amounts of dilution.

Hopefully management can get a deal done soon that allows the company to grow again, otherwise this downward spiral will continue.

Just my opinion