GMD SBM merger

Interesting ... the presentation assumes GMD gets 100% of DCN, which of course it doesn't have. A bit premature I think. You have to get to appendix B on page 55 to read:


· Dacian owns strategic 2.9Mtpa processing plant in the heart of the Leonora district · Dacian strategic review continues with Dacian seeking expressions of interest for access to Mt Morgans Mill from ~March quarter of CY2023 through to ~September quarter of CY20241 · Genesis will continue to have input into Dacian strategic review subject to compliance with the Corporations Act and (so long as Dacian remains listed) ASX Listing Rules2 · Genesis’ Takeover Bid is unconditional and final as to price, and will be extended to 16 January 2023 (unless further extended). · If Genesis does not reach 90% of Dacian, it will be unable to undertake compulsory acquisition of minorities, and: 1. Dacian will remain a separate company 2. Transactions between Hoover House and Dacian will be on arms length terms and / or may be subject to minority shareholder approval. 3. Future decisions regarding Dacian’s funding, assets and operations (including the future operating strategy for Mt Morgans) will continue to be made by the Board of Dacian in the best interest of all Dacian shareholders · Accordingly, in that event, certain of the operational benefits and synergies from regional consolidation shown or discussed in this presentation which assume a 100% acquisition of Dacian may not be able to be fully realised · In seeking to realise such synergies, Hoover House will at all times comply with the relevant provisions of the Corporations Act and (so long as Dacian remains listed) ASX Listing Rules

ATM the takeover offer looks unattractive, to say the least, for Kin / Delphi or the remaining DCN shareholders. The reason for keeping it open until January, even though it has clearly stalled, might be the hope that GCN shares will increase so much that the offer will become attractive. Hmm ... what if DCN shares go up more than GMD in the interim?

I am thinking DCN will get ore for its mill while it re sets its own mining plans ... so another possibility is that early next year DCN MC looks a lot better. Kin should get a milling deal from DCN or Red 5 ... they both need a lot of ore and the Kin Oxide ore is ready to go and well suited.(SBM have deferred their mill upgrade plans, so the merger in the short term between SBM and GMD doesn't fix any immediate mill / feed mismatch). I am guessing DCN will take ore from both Kin and Ulysses (GMD).

GMD have been very slow to acknowledge the "grab DCN for song" plan ... which would have been a triumph ... has failed. They can't offer a sweetener to Kin / Delphi for their 10% because they would have to offer an equivalent $ value sweetener to all the DCN holders, including those who have already accepted. They can't use their control of DCN to favour GMD because that would be illegal, and everyone is watching closely atm.

Kin seem confident the IP surveys, done by the Navigator receivers because they had to spend some exploration $ or lose their leases, are the missing bit of the puzzle to find the deep high grade gold beneath Cardinia. The first deep diamond assays due this week or next week. They have already reported that the Geos can see wide mineralisation interesections in the cores. Finding the deep high grade gold below Cardinia puts the whole deposit in another league. Delphi know that, and have proved they are willing to play a longer game, is my assumption.

If kin gets and income stream from the ready to go oxide ore, which seems very likely given both Red 5 and DCN are geographically well placed, have large mills, and are seeking feed ore, I would expect the will do a more fine grained IP survey and accelerate the deep diamond drilling.

In the background of course are labour and equipment shortages, and cost increases, but those affect all the players.

Just my opinion atm.