You are right Yatchy, the share price started moving so they had to get KAS into a trading halt so that the share price couldn't have a much stronger VWAP when it came for the incompetent independent expert to approve the merger as fair and reasonable. It will become a mine because there are few tin mines coming online and the NPV at a tin price of $20,000 is closer to $100m than what the DFS had stated. The behaviour that Lion Selection Directors approved Kasbah with a viable DFS to merge with the debt ridden and uneconomical AMR project is shoddy and they should be held accountable - even if they have now swapped their Lion Selection representative on the Kasbah board. If Lion Selection were looking after Kasbah shareholders and not themselves (and Pala) trying to get something back on their worthless AMR investment then this would never have happened.
In December Kasbah issued 138m shares to Pala at 2.7c and I assume they will take up their entitlement in the 1:2 capital raise so another 70m shares.
How Kasbah was allowed to announce a share purchase plan and then stop that and six months later announce another highly dilutive capital raise is a good question for ASIC. What are they spending $5m on when they tell us they have an updated DFS due later in year which should reflect in a higher share price.
KAS Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
