Furthermore. MTC’s debt to Minerva has been assigned to Fiona and Gino. So if the deal falls through Minerva’s expenses on the PFS are paid back by Fiona and Gino. Does this mean MTC then will have a debt to Fiona and Gino or is the debt wiped out. The way I read it the debt is wiped clean from MTC but that almost seems too good to be true. If this was the case then Fiona and Gino at the very least are risking $960,000 of their own cash that the deal goes ahead. I say only $960,000 as that’s what they were paid prior to this amendment. Maybe the extra almost $2.7 mil was only available to them if they agreed to this. Risking 960 k to help seal a $18 mil deal is not unreasonable.
my take is there are 2 possible outcomes.
1) Minerva pay an extra $15 mil to get 18% of MTC. Which is remarkable considering MTC market cap is $23 mil.
2) Minerva don’t come through and have blown $3.5 mil and get nothing. Gino and Fiona also get no money and both retain a very large shareholding in MTC which they’ll be keen to monetise. MTC gets a PFS done for free in a large gold resource in an environment of a rising gold price.
IMO Minerva has never had the money and were hoping a Takeover was going to come through and they would profit on their option for 18% of MTC. They have been able to generate $3.7 mil so far. I’ve held this opinion from the start.
GLTAHs
MTC Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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