Maroon Gold and EUC, page-19

You would have to think Maroon were very active in trying to find someone to merge with. EUC is abit of a head scratcher(they were in cobalt), they had 11 million in cash and gold tenements in Slovakia or some European country. You would have to think that they were pushing pretty hard for a merger with Laneway, it would have made far more sense. I'm not at all familiar with EUC, but it seems like they are paying way too much for Maroon, but then Im not really sure what EUC bring to the table except their cash, which was only recently raised. The debt is denominated in USD as well, which a risky proposition in itself, Maroon has 4 million in cash in AUD, a 2 million USD debt payment is due in December, which is only the first of many, their 350 tpa plant processed our 70 thousand tonnes in what, 6 months!? It might be because of the long trucking distance but that is way below capacity. Its an expensive business running one of those plants, especially when its not running at capacity. Weren't too excited about going it alone were they? But then they are private equity so I suppose that's there MO.

So maybe management have dodged another bullet, euc is down 35%, they could make a roaring success of it. Robert Dewson the MD is on 305,000 a year, is a geologist and there are alot of performance rights being granted if he can make a success of it. EUC has along line of 7 figure losses year on year(ours are more like high 6 figure losses for the past three years and then they go into the seven figures before that). Its going to be interesting to hear what they have to say at the AGM. Seems like they are possibly going to stage manage releasing the drilling results just before the AGM, with hopefully alot of oohing and aahing at the high grade intercepts. Hopefully...