MPO can use the funds for " opportunities " though.
Some comments familiar to MEL holders in this extract from the MPO announcement on 29/10.
Both companies share a vulture fund as holders.
Cooperation with MEL would also give them access to cash + management/board.
My personal choice is return of capital.
" Molopo is pleased to announce the appointment of Brent Bonadeo as Independent Adviser to the Molopo Board commencing 1 November 2015.
The appointment of an Independent Adviser rather than an executive is consistent with a prudent management of cash until the future of the Company is agreed.
The newly comprised Molopo Board has received legal advice confirming the Company can apply the balance of its cash not otherwise accounted for, to appropriate opportunities.
Given this and the downturn in the oil and gas sector, it is arguably a good time to look at opportunities.
Brent Bonadeo's initial focus will be conventional oil and gas opportunities in stable geographies in either the development of production phase.
Shareholders can expect to have any material opportunity presented to them at a meeting of shareholders.
Brent Bonadeo has been an investment banking executive focused on energy and resource markets for over 20 years. "
MEL Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
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