2ic,The proposed partner is a "significant South African based...

2ic,

The proposed partner is a "significant South African based mining entity " according to the spivs. We do not know that for sure as yet. We have to take everything they say with a grain of salt here, as according to the company they are now cash flow positive and they are still on track to achieve their 45000 ounces target even though by the end fo July they had only produced 2410 ounces. I think what we read in the announcements is open to two different interpretations: one being the optimistic view from the directors and the other is the more realistic and somewhat negative view which I have been taking since not long after becoming a shareholder. I remain optimistic but always sceptical about statements made by directors.

Your assumptions certainly make sense and may be the best possible outcome for shareholders. I would rather see a merger/takeover where another entity pays shareholders a small premium for all of the shares rather than face the possibility of the directors dishing out a big placement to associated parties at rock bottom prices.

Vendor - I fully understand why a stock may be put into suspension. You are assuming that the news is going to be positive for the share price. Did you ever consider the possibility that the news may have already been leaked and some insiders were selling because they may have got wind of a capital raising. What do you think an institutional holder or any holder for that matter will do if they anticipate getting more stock at lower levels.....sell as much as you can and get back in cheaper. Consider this: the trading halt and subsequent suspension may have been asked for by the company because the share price was going down and they asked for a halt because the lower it went the lower the price they could negotiate in the placement....just a theory.

Dr cash - Can you clarify as to why you seem to think that macquarie bank increased their shareholding? What I presume you mean is the broker macqurie private buying on behalf of their clients. I posted here a few days ago that a prominent european investment bank was a heavy seller including the last trade in the stock before the trading halt - that's a fact. The same exact broker was heavily selling MLI days before the placement back in June - that is another fact. Make your own judgements.

Good luck.