104 class action members and rising...more responses:- I have...

104 class action members and rising...more responses:-
I have remailed and a saved on USB and saved all my data on USB, computer is playing up but I have 3 other back up firewall hard drives seperate from this computer. If they want to know who we are or who i am they dont need to hack me or us...they will find out from our solicitors in the class action.

"I bought into this company only several months ago based on a thorough search of its financials which also included the conference calls of the last 6-9 months. We had some funds saved and also borrowed funds for the future of out two children as I only work as my wife is looking after her mother who has dementia. After reviewing the various announcements of the past week I was gobsmacked and now find it very difficult to sleep. I have not as yet informed my wife as I am holding back telling her at what looks like a very deliberate misinformed communications that this company has been representing to all shareholders which is unethical and maybe bordering towards fraud. I hold 3,000,000 shares. You have my full support. Please confirm via email or on HC you have received my email..."


"I have followed MBN for a long time and have invested $11,900 for a total of 100,238 shares. Also listened and read the information provided by the Company and not happy that they have screwed us. I live in Dubai (Australian Citizen) and thought I was on to a winner."


Legal Advices Received
My in-laws who are a solicitor in Sydney & a barrister in Sydney have advised there maybe several potential breaches of ASX & Corporations law statutory provisions,
they pointed out directors duties are owed to ALL shareholders not a select few or just to the secured creditors and these duties include a common law duty established by the English common law system to act in the best interests of ALL shareholders, not to cause economic loss and to disclose any material changes in circumstances immediately upon it becoming aware of the same such as spending $16M in 6 weeks, or if the capex was not $33Mpa but $66M pa pro rata or if the cash would reduce to 0.

If in July or early August when they became aware that
- the cash was insufficient,
- sales income was not received as projected,
- sales or shipping agreements were in breach or payments not received,
- the capex was doubling from that budgeted pa,
they were obliged to immediately disclose this to the market via the ASX rather than go to a TH and allow people to trade shares on the known circumstances.
He advises as they failed to do this and as in the Q2 they reported $10M cash at 30 July, that COP was below NP, a CR was possible, it implied they had adequate cash reserves or could source these without a VA or TH or any insolvency.

He also advises this 4 year mine plan is entirely inconsistent with the circumstances now presented and it was incumbent to disclose that this plan had been abrogated and could not be met, the capex was materially greater than announced and cashflow and cash at bank were both inadequate and would be depleted in short time. Absent such clear disclosure any pasted warnings or contrary references suggested by tratimot on here are entirely irrelevent as the courts look at the actual express statements and announcements and what a reasonable person would treat them as and thereby there are grounds for a class action of shareholders if MBN is liquidated and the mine sold off to the lucky creditor.

He advised in the FMG Forrest case that went on appeal to the High Court, the court could not find any evidence of any one who lost money as it relisted and fortunes were made in 50 baggers thereafter and the disclosure of the contracts that were later withdrawn were honestly believed by the presenter as signed, but this will not be the case in the event of a liquidation or total loss of all share value or where the failure to disclose such increased spending, illiquidity or cash depletion was not adequately or expressly disclosed. He said this is entirely different a case to the FMG case.
Directors have office bearers insurance as a requirement for all publicly listed ASX companies and the insurers and directors may be personally liable for the losses of shareholders including the US NHs $500M. He said there are numerous class action firms that would love to run this to trial as the insurers normally settle before trial after wasting $Ms in legal costs to face $Ms more in a judgement and the other sides costs plus interest.

He said our class action may have much stronger prospects more so that the FMG case as actual losses are provable and the failures of disclosure cannot be now invented in hindsight whereas in the FMG cases they were dealing with no losses and an actual signed contract and an actual disclosed announcement that spiked the SP 10 fold then dropped 5 fold then spiked 50 fold after that. A company that has inadequate operational cash and unexpected escalated expenses and unreceived income payments must have disclosed this in the Q2 report in much stronger and clearer wording. Very interesting.

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