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Marindi Metals to acquire Mt Holland?, page-579

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16/11/16

15:02

Post #: 20662634
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Originally posted by Gazzajohn ↑

Talk about an emotive going nowhere. How about we look at the backdrop that this "deal" was alleged to have been made.
KDR was in the process of transforming from an explorer to a producer. They were spending a fair amount of money on acquiring assets and developing these assets. Pretty aggressive actually. Wanted to become a tier 2 miner. Looking at the cash flow report ending Dec 31 2015 shows cash balance of $732,000. Costs for the Q were $4,572,000. Revenue was $3,374,000. If this continued, by the time CR happened in early March they must have been down to their last dollar.
Under these circumstances, if someone come along and offered $100,000 for a mineral that was not even on your radar, would you have snapped it up? Remember KDR were after the gold, nothing else was ever mentioned until the 13th of April.
Food for thought and is pure speculation and conjecture on my part.

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Offer for Lithium put to KDR in April'16. KDR had $1.75M in cash at the end of Mar'16 Qtr. It then sold Gunga West to Metals X on 31st March '16 for $1.5M cash and a further $1M of milestone trailing payments. They were hardly rubbing two shillings together or facing a serious liquidity situation which would call for an immediate $100K injection from MZN.

MZN Price at posting: 1.7¢ Sentiment: None Disclosure: Not Held
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