new announcement .. funding proposal, page-81

I bailed out of the majority of MGX I had (at a loss) and just kept 10k shares- which was a mistake too!!! It was only a trade for me, but it went very wrong.

It just goes to show you that you can never be sure what can happen next. I think about 7 or 8 of the biggest brokers had either a buy or strong buy recommendation on MGX and then the wheels fell off. I once viewed MGX as one of the safest IO stocks outside of BHP RIO with excellent forecast earnings etc., so did all the brokers.

I seriously hope GBG does not suffer some similar fate along the way. Thinking it can never happen is foolish, it can and often does and always at the worst times.

But I think the latest proposal is a positive in light of GBG's finances but it all depends on the agreed price.

After all, GBG probably has about 6bt of IO and Ansteel owns about 2bt already. So there is virtually 4 bt that Ansteel only owns 12% of and how much is GBG willing to let another portion of that go for????
Issuing 200m shares say,ie 80c each, would mean another 30-40% of that resource gone and Ansteel will own more than half of GBG's in ground assets.

I saw someone rejoicing an 80c share price for the proposal- that person has no idea what that means and needs to have a cold shower and a reality check if they reckon that would be a good deal for GBG shareholders. Ansteel would end up owning more of GBG's assets than them.
And 60c as some are suggesting would amount to nothing more than a sellout of GBG assets.

Still, all supposition until we know the real terms and the agreed price. It will happen though.