sorry to hassle you guys again, but....read this announcement...

sorry to hassle you guys again, but....


read this announcement very carefully.

Note that if MMN issue shares to anyone in the next 3 to 4 months which I believe they may have to to prop up working capital, then the Cornell can ask for $7.5million to be converted the next day at that same price

Nothing to stop Cornell selling the rallies and capping the price to force conversion at an attractive price for them. Thats how these guys think, they aren't running a charity!

Its a brutal and ugly world out there right now and you better believe it.

If MMN goes to the market looking for money the first thing the market does is look at this announcement. If MMN doesn't get its act together in the next 3 months its going to be ugly.


7 November, 2007
CONVERTIBLE NOTE FUNDING

The Company today received advice of the release of the first tranche (50%) of the Convertible Note funding announced on 19 September 2007.

Net US$4,150,580 will be received after deduction of establishment fees and the first 6 months’ interest.

These funds will be used to undertake the first stage of an upgrade to the crushing circuit at the Twin Hills mine, maintain a strong exploration impetus on existing projects and also to evaluate new silver project opportunities.

The main terms of the Convertible Note are set out below.

The Subscriber will make available US$9million as a Convertible Loan to Macmin in two tranches of US$4.5million three months apart.
There will be six repayments of principal, commencing 6 months after the Closing Date. The Company may make repayments in cash, or in shares at 3% discount to the Volume Weighted Average Price (“VWAP”) in the pre-determined period prior to issue of the shares
The term of the Loan is 3 years with interest rate at 13% per annum payable quarterly, in arrears, in cash, from June 2008. The interest rate has increased since the loan was first announced due to the lender’s requirement for reimbursement of any withholding tax deducted in accordance with Australian Tax Law.
Commencing 6 months after Closing Date the Subscriber has a Conversion Right and may require conversion of all or part of the outstanding loan to shares. The Conversion Price is 150% of the VWAP over the 20 trading days prior to the Closing Date of 29 October 2007 which equals $0.356. If the Subscriber gives notice of a Conversion, the Company still has the right to elect to pay the Subscriber cash instead of shares, paying out the share price gain above the Conversion Price to the Subscriber. The Conversion Price reduces to the lowest price of any issue of shares to a third party if the Company issues more than 5% of the number of shares currently on issue. Issues made pursuant to existing options (and employee option plans) are excluded for the purpose of this 5% calculation.
Macmin will have the right to prepay a portion or all of the Convertible Loan in cash and at par at any time.
Macmin is required, under the facility, to issue the Subscriber options (expiring November 2012) to purchase 5,000,000 shares at $0.48 (the historical high of the shares).
Yours faithfully



Garry Edwards
CHIEF EXECUTIVE OFFICER