MYL 0.00% 70.0¢ mallee resources limited

I am extremely concerned by the terms of the Hartree offer, page-184

  1. 523 Posts.
    lightbulb Created with Sketch. 97
    Here it is (just copied text as its easier than cutting and pasting the lot)-

    The stategovernment says it is is "continuing to engage" with the AveburyNickel Mine's owner as the company awaits a shareholder vote likely todetermine whether it survives.

    About 200 West Coast jobs would go if the mine closed.

    "Ourgovernment is a strong supporter of the Avebury mine and we recognise thepositive impact its reopening has made to date to both the West Coast regionand the Tasmanian economy," Resources Minister Felix Ellis said.

    "We've made funding available to Avebury throughour Exploration Drilling Grants Initiative and continue to engage with thecompany on support to keep them moving forward."

    Mr Ellis was responding after being asked for histhoughts on the situation and on whether there was anything the governmentcould or would do. He did not elaborate on the "support" he mentioned, or the options.

    Labor's Shadow Resources Minister, Shane Broad, saidthe government needed to step up to ensure the mine stayed operational.

    "The resumption of the mine has been great forthe community and it would be devastating if the mine was forced to close at atime when the West Coast is starting to take off," Dr Broad said.

    ShadowEconomic Development Minister Dean Winter said Mr Ellis was "doingcartwheels" when Mallee Resources reopened the mine.

    "He said more jobs on the West Coast also leadsto flow-on benefits for the community, including more children in localschools, more groceries being bought at the local supermarket or servo and morecounter meals being bought from local pubs.

    "Of course he was right, but now all of that isat risk and he doesn't appear to be willing to do anything to help."

    Mr Winter said the mine could not be allowed to closeagain.

    "The first thing the government could do isrelease the Aurora Energy cash bond that was put in place, to free up muchneeded capital for the business," he said.

    "Thereis no justifiable reason why this bond is being held and Mallee has said it ishappy to pay its monthly power invoice in advance to avoid any risk.

    "But it is just one example of the Liberals'failure to support this mine.

    "Labor has reached out to (Mallee boss) JohnLamb and the Mallee team to offer any support we can.

    "We want to see a long and successful future forthe mine and its 180 workers."

    Mallee reopened Avebury last year, but has struck production problems, is yet to get the mine to nameplate production capacity and has been hit by a weakening nickel price.

    It needs $US18 million in the next two months orpotential voluntary administration looms.

    The moneyis unlikely to come from big shareholder and key lender Hartree Metals unlessshareholders agree to the proposed deal in a vote on July 27.

    The deal would allow Hartree to increase its stake tomore than half of Mallee shares, giving it effective control.

    The proposal has angered some shareholders, who havebeen rumbling on investor forums about voting no.

    An independent expert concluded the proposed deal was"not fair but reasonable".

 
watchlist Created with Sketch. Add MYL (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.