I agree with most of what you say Ricko, but definitely not with...

I agree with most of what you say Ricko, but definitely not with point 5. as I said here last Friday the word
"completion" was open ended and under ASX rules it was necessary to be worded as such. The same word "completion" comes into play again for MEI this Thurs 6th April.

As fate would have it MEI need to find US$5m by the 6th, so the deal with Keystone for the completion of the sale contract for Juerena dovetailed into a synchronized timing for the "completion" date for MEI to conclude their due diligence on Caldeira and make the payment of US$5m to meet the terms of that contract.

So the timing for completion of these contracts means that MEI will certainly have been doing some work on having an alternative place should Keystone not be able to complete. Part of that would have been MEI getting very clear legal advice on where they stand with regard to legal obligations on their part to Keystone under the terms of that contract.

So todays ann. makes very clear MEI feel comfortable repudiating Keystone on the Juerena contract, and by moving ahead with a CR MEI would still most likely have had no problems raising the needed funds to satisfy the Togni Caldeira deal, however in current financial circumstances nothing should be taken for granted. So you might think that MEI had been hopeful of concluding the Juerena sale, because if they had been ambivalent then MEI would have already ann'ed a CR, because as it is they will be cutting it very close.

The wording of todays ann is important because legal implications are primary.


So I take it that MEI have done the necessary DD and we move on. IMO gold is getting ready for a breakout and will hit new all time highs before June 2023. The current turmoil in the banking sector (which paradoxically may have been a problem for Keystone??) will push gold upwards, which in all likelihood will make Juerena and Palm Springs considerably more valuable than they are at present.

The instability in the financial sector and the war in Ukraine will contribute to a new gold mania, gold has had a hard ride since the heady days of mid 2020, so when sustained new highs in gold are hit the recoil will be hard.

This should put MEI in a good place, but I want to see MEI do some completion of their own asap.