This is what I believe, ofcourse I get bashed in the IVR/SVL threads when I give a personal opinion saying 'believe' instead of 'know', however having followed Joshua Pitt and Red Metal for years I have much more an idea of how Red Metal directors operate than they do.
red metal directors are old school, they are successful miners and they operate within normal parameters but they can think outside the box and they are very clever at raising capital and negotiating which is why so many people like Joshua, Rob and Russell Barwick. And it is the red metal directors who spun out maronan. Rob is also on the board of maronan.
whether it was coincidence or not, they timed things beautifully, they spunout maronan 1.5/2 years ago with the options given to red metal shareholders and maronan ipo investors at 30c. They planned it for the cash to run out end of this quarter and they have followed their budget to perfection. And look where we are in the share price at the exact time when cash is running out, just above 30c so there is the ability for options to be exercised right now. Perfect timing because no capital raising necessary if it happens.
A feasibility study is done because no big investor will invest in Maronan without it and they wont be able to borrow money without it.
but I believe that they have cleverly designed this so no borrowing is necessary and no other investors are necessary. Rob, Joshua and Russell are trying to reward the long term red metal shareholders and if they all participate its not just $15 mil that can be raised at 30c but another $15 mil at 60c with those options.
i have never failed to invest in a Joshua Pitt company since Dalrymple 20 years ago, a company which Joshua directed which he turned into a nickel mine. He went without director fees when cash ran low. I invested in Hampton Hill mining another company he directed which got delisted because of BS ASX listing rules, but hampton still has royalty rights with saturn mining. In Hampton, Joshua lent money to the company at zero interest to fund drilling programs. My mother invested in Red Hill Iron on my recommendation and three years ago it went from 16c to over $5. Joshua negotiation with Rio or BHP or whoever it was in a massive deal and RHI was dormant for years until he secured the deal. Theyre cunning, great directors, incomparable to the other silver developer directors. I believe I have a good knowledge of how they operate, and my dad has followed Joshua and been to many of his AGM's.
here is the mining.com article where the CEO says they are thinking of mining it themselves.
my dad who passed away three years ago would have been absolutely thrilled to read that because Joshua has only ever made his mines through joint ventures before. Mining it themselves means streamlined, and no feasibility studies needed, they just need enough confidence and certainly that comes when the silver price goes higher.
also check out the top 20 shareholder list whej it comes out in august. I can tell you some interesting things that are going on just from this list. Basically there are very few sellers now and even a tiny bit of buying is going to make maronan fly. Its because its 53% red metal, 10% crescat, 4% tony locantro and clients and 3% joshua pitt. There was 8% veritas securities but that is now down to less than 0.5% . Veritas is your seller up until now and they have very little left. Many of my colleagues and investor friends have been the buyers over the past year so veritas's holdings have been soaked up by us. There are plenty of people now with diamond hands now. For anyones interest Veritas will never show up as top shareholders because they cleverly hid their shareholding in about 8 different accounts and some of these were just below the top 20 level. They definitely broke ASX listing rules but you get that with brokers
MMA Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
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