Has anyone had contact with MEL since Glennon took control?

It has been 1 month today since Glennon spilled the board and took control as Interim Chairman.

VEN's presentation (mid Sept) has maintained the current work program timeline. (Vali-2 and Odin-1 reworks and O-2 connection)



At the same time as the spill Glennon advanced MEL a further $900k so they were able to fund their share of the work program. Glennon have been and remain the major supporter of MEL. Given their exposure to both debt ($3m) and equity ($3m) it is in their interests to maximise their overall return by getting MEL cashflow positive and saleable.

Nothing is cheap about the Glennon funding however ALL of the returns depend on MEL being successful.

- interest is capitalised, with repayment only to be made as revenue is earned, creating flexibility for the
Company to manage any unforeseen issues with production
- an opportunity to convert debt to equity in the event of a takeover
- at least 20% of revenue will be applied to repayment of the loan
- Glennon to receive 12.5% royalty after repayment of the loan.

No interest or loan repayments until (or unless) MEL has revenue, a kicker if MEL gets taken over and an ongoing royalty. None of this comes into play unless Glennon can get MEL cashflow positive. Given that MEL's operating costs have been further reduced an incremental increase in production could get them cashflow positive. That would have to be Glennons first goal.

If MEL can get their house in order the next step is to wait and see what Bridgeport and Vintage do. Bridgeport have taken an axe to the Odin and Vali reserves and could be a seller? I'm not sure where VEN is going with their GLL merger.

It would be great to see MEL release a statement and find out what Glennons actually thinking. Or has anyone spoken with MEL and had any additional feedback?