Ronmac you are obviously a plant by the new directors or you...

Ronmac you are obviously a plant by the new directors or you really, really, just don't get it. Tim Luca, I'm surprised at you, I thought the offer was really clear. Let's go through it again.

Existing shareholders are totally screwed in this transaction. Absolutely. No question. No ifs or buts.

At present existing shareholders with their 511m shares own the company. This consists of (when the company entered Admin): Assets: a 50m oz silver mine, all infrastructure and machinery, some stockpiled silver, about $3m in cash, and the problem - a production process firing on 1.5 cyclinders and so producing silver for $22/oz when the market price was $15, and the expected cost of production was $7/oz. The liabilites were about $7m.

The deal proposed by the new directors.

1. Issue themselves lots of shares, some free, some at 0.1c, plus grant themselves a huge royalty on the silver, so that even if the firm did become profitable in the future, much of the rewards would go to them and not the shareholders.

2. Consolidate all existing shares at 20:1. That means you will own 5% of what you own now. As they will then issue another 400m shares @1c each in a capital raising.

3. This means the new share issue will be roughly the same as now, around 500m, but existing shareholders will own only 5% of the company, and the company will have a large royalty it always pays reducing any profits that go to shareholders.

4. Since the new shareraising is at 1c per share, when the new company starts trading again on the stock market it will be at around 1c, in fact many stocks dip a long way under their issue price so it could be 0.8, 0.7, 0.6, or 0.5c for a share. Even if we say it trades at 1c, for existing shareholders who already have lost 95%, their few shares left, which were trading at 4.4c when trading ceased, will now trade at 1c. This means you have lost 80% again. Losing 80% of your remaining 5% means you have 1% left.

5. Anyone who says you will do well later on, is just trying to kid you or steal your company. If you have lost 99%. That means even if the company 10 folds, from its new listing, you will still be down 90% on what you had when the company went into Administration!!!!

Anyone existing shareholder who votes yes, or is talked into voting yes by the new syndicate, deserves to lose all their money. They would be better sending their money to the Nigerian widow who emailed them and promised them $50m if they would just send a few thousand to secure the funds.