there could be something bigger in the works with regards to wgx but it is entirely possible they just needed the money. What is current cash on hand and burn rate? is the spin off of barkley still going to go ahead? They mentioned in one announcement that there are 15 'stranded' deposits totaling around 1.8 million ounces in their vicinity, yet not one has been secured so far yet the idea of expanding the plant for toll milling was floated some time ago and only now we see some urgency. This first scenario merely implies a level of incompetence or bad luck
The other day I posted this regarding the delayed fs: 'I think you might be right. They offload the AME stake to WGX at a loss, maybe even give them a look at the historical drilling data they have for AME tenements. Delayed FS while someone pushes down the sp, low ball takeover offer incoming?'
As you said yourself the dud fs would not have taken management by surprise, yet no third party deposits got secured in all this time. So maybe selling the AME stake to wgx at a loss was all part of a wider plan. They knew the dud fs would then leave MDI as a shell and meaning any post FS takeover or sell off would be lucky to cover the asset value. Such deals can be structured so that management walk away well taken are of and retail shareholders hold the bag. WGX get a sweet heart deal and the insiders set up shop at barkley
MDI Price at posting:
14.5¢ Sentiment: Sell Disclosure: Held
