I agree but I really don't think that $40m is needed to do the...

I agree but I really don't think that $40m is needed to do the job - could be done for $20m - $25m with skin in the game commitment from staff/directors and discount from creditors/lenders.

I would have thought that any new owner could do a deal with Chimaeara/trade creditor to pay them off as a proportion of what is owned and thus the $11m owed to Chimaera (their are conflicting statements on this - $5.5m slide 11 in Mercel presentation 25/11 and A$4.5m - ann 16/10) and trade creditor (slide 11 of 25/11 and also note 11 2015 Annual rpt - doesn't seem to have changed from 30/6). Maybe they could get 25% discount on these (i.e $7m - $8m). They then need the $7m for re-refurbishment. By leaving production until enough of the refurb is in place for economic operation before re-starting production they should be able the cut working capital to about $5m - $10m (they already have a trained but laid off work force). By careful (and competent) management should be able to get it up and working again on $20m to $25m (particularly if directors/staff put some skin in the game by forgoing salary and either taking it as equity or payment once operation is CF +ve). The existing property (plant and land), sales and pre-qualification are worth quite a bit. Feel a merger (and re-capitalization) with Lincoln minerals could be interesting - would give an excellent resource base and the HG graphite next door cannot be too different. A merger would need ageement from SER to reduce their 1.5% royalty (or only make is applicable to the VXL resource)