capital raising, page-20

Petlas,

Pep, if mzi simply come out and say we need more money for our admin costs do you think shareholders will cough up. There has to be some incentives to participate in this cap raising or mzi will be wasting their time.

Its a pretty poor climate for resource minnows to be raising money, no matter what sort of project that they are trying to get up. I dont think any company would come out and say its just for admin costs, because shareholders dont back time wasting.

So will MZI holders back it? It's hard to know. I think management need to outline all the issues with Stirling, offtakes, the banks etc. Even discuss what Tricoastal's intentions are including if they will participate in this raising. If they do all that, then the acceptance rate could well be high. Anything less than that and holders could really spit it. People on this forum have already outlined promises that have been broken, okay, nothing ever goes to plan, but give holders a full explanation and you will probably get their full support.

Incentives?
Possibly another option. But they rarely come through from my previous experience. Shareholders would pass on an option just for comfort that the raising will give the desired effect and getting this project started/or off the ground. So it goes back to my point about communicating properly with shareholders.

Also you wrote that you are hoping that sophisticated investors may be aboard, I dont think thats the case. I think they are coming to you guys.

You also said
Mzi are vastly different to other companies who go through cap raisings to stay afloat and for their exploration costs. Mzi is in a much more advanced state with all approvals in place and a product ready to be extracted and sold....which is the current sticking point and thorn in its side. Get over this offtake issue and its blue skies ahead again.

This isnt right. There have been money other sand mines listed and unlisted that have got to this stage and beyond and fallen (Ive seen it first hand).
Sand is not sold on an open market like iron ore, copper, gold. Each companies product is different in specifications and applications, so much of the time it has to be widely tested before anyone takes it, hence why their has not been any new sand miners coming through and the big three miners plug this with their customers with the 'product consistency' line. (This is where Tricoastal can throw their weight around, and why they are important to this project).

I do know there are real issues with the market at present and they can be plainly seen with the lack of offtake agreements that are coming forward for MZI. I have mentioned in previous posts about Iluka, Rio and Tronox holding vasts supplies in warehouses, this has not changed. I also think that offtakes are pretty much dead at present because of this issue and the way China is at the moment with credit and their building boom possibly bust.

The Dupont deal is different, they only want Leucoxene, its a good stocking filler for any company but the real money is with the other products.

I hope this answers it.

I have to run, got to get in the garden.

Pep