Also they are apart of the Geraldton Alliance and have taken a stance with the Sinom Group. That is why Sinom also wants Alan Rule as a Director on the RMI board. Together with the Alliance all companies concerned will make fast inroads. Its all to do with breaking the Duopoly that RIO and BHP have. BAOSTEEL are currently representing China in the Iron-Ore pricing. Sinom is a part of Baosteel. Do you get it?
Decided to look into things a bit more after recent activity and like you am wondering what part MGX is playing in all this.
This is just my take on what I have found out so far.
1)
The newspaper article that alerted me to RMI in the first place also mentioned the Geraldton Iron Ore Alliance which is made up of 4 main companies and a fifth has just recently joined.
Gindalbie Metals Midwest Corporation Murchison Metals Mt Gibson Iron Ore Golden West Resources (Recently Joined)
Combined Market Cap. $628m
The Alliance was formed to spend $50M this year alone on feasability studies and joint large projects. Part of their aim is to join together to push towards the port development and rail infrastructure within the region. Their aim is to be producing more than 50 million tonnes by 2010. This is very significant as they already have enormous interest with buyers and partners including Chineese traders and Sth Korea's giant "Posco Group".
2)
RMI was also mentioned. Wanting to truck iron ore to the Port of Wyndham and has secured "in principle" sales agreements. Now why would you have the words "in principle" highlighted in this article. I would suggest that the sales agreements would only come to pass if changes were made to the board for which this meeting which is taking place on the 11th of April.
3)
Sinom - (19,400,000 Shares) called for the General Meeting to get rid of the current directors and replace them with the new ones.
John Leach - Project Developent & Corporate Finance
Alan Rule - Currently Finance Director of Mt Gibson Ore
Zhang Chi - Founder of the Sinom Group He was an Iron-Ore Trader for Baosteel and also within the Chineese Steel Industry. As well was a director for Bao Steel Enterprises. (Subsidiary of Baosteel)
3) With the above information, I would suggest that both MGX and Sinom Group are working together to run the company. Given the current situation and expertise in each of their fields it is fairly obvious.
4) From the left field. As China's largest steel producers Baosteel are currently in negotiations for iron-ore pricing with both BHP & Rio. As you would be aware, China is not happy with the 71.5% price hike last year and are eager to break this monopoly.
5) One way to do this is of course through lucrative contracts with small players. The Geraldton Iron-Ore Alliance and controling prices within RMI by developing it would provide them with the break through they need.
6) To think, you would have a top Boasteel trader plus MGX Financial Director on the board of RMI implies that this is a very real opportunity of RMI and shareholders.
7) In walks Oppenheimer to spoil the party.
Oppenheimer - Chairman of Stemcor.
Stemcor sells all of its shareholdings. 6.1% Dominant Holdings purchases 6.1%.
As it turns out, Stemcor sells to Oppenheimers private holdings. He owns Dominant Holdings. He also holds 6,000,000 MGX shares 1.50%.
8) Oppenheimer I believe is the one that is wanting to increase his shareholdings. I doubt very much that he would spoil the party of what MGX and Sinom Group are planning, unless of course he wanted to takeover the company.
Overall, thats my take on things. We should find out alot more over the coming weeks as ASX announcements come to hand as to the current buying.
Cheers markco2
RMI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)