meet your new major share holders, page-4

I’m concerned about asset stripping too.

I thought I’d share one article which IMO is a must read for anyone invested in an ASX mining company, and not just one which has just gone into admin.
www.abc.net.au/news/2014-10-28/concerns-over-sale-of-cobar-silver-mine/5846672

The above article pertains to a great silver project owned by Cobar Consolidated (CCU) where the mine was eventually acquired for $375,000 despite offers apparently being made for several million dollars. Yes, you read right. Please read the article.

I’m not sure what happened to the issue eventually but it is amazing if nothing has happened.

Apparently, it was purchased by Southern Cross Goldfields, as the article mentioned which eventually changed its name to Black Oak (BOK)
http://www.abnnewswire.net/press/en...hange_of_Name_Black_Oak_Minerals_Limited.html

I just checked their HC page, and apparently, they’ve gone to receivers too. Guess, the mine was cursed, after all.
http://hotcopper.com.au/asx/bok

Anyway, IMO, it is best to always keep the CCU case in mind when dealing with all mining companies, and I try my best to keep it in mind. A common misconception and mistake is pouring in money to top up purely based on thinking that we'll get money for our mine when we eventually sell it. The best way is never sale of tenements but actually exploiting it for its worth. Our neighbours are a class example of that and have shown the way.

I’ve seen some comments yesterday directly or indirectly suggesting that the true worth of the project will be found once and for all. As explained above, it does not always work that way.

Firstly, it depends on the extent of the amount to be paid to be creditors. I can’t remember the last time a mining company went into admin because of creditors. Normally, it is an issue of crushing debt. So, this is a seriously bizarre case for me. Will be keen to see.

So, if a major amount has to be paid, then it could either be sale of assets or further heavy dilution. Either way, current shareholders obviously lose.

And then there is the CCU case as an example where even the sale was apparently made for peanuts despite people saying that they offered multiples of that amount.

Think it can’t happen to TON. Think again. We’ve already had a long list of bizarre events culminating in the grand finale – admin few days after our “strategic update”

Shareholders probably need to be alert and start paying close attention to what is going to happen next, although I don't know how much it is going to help, and how much info is even going to be shared with us.