rights issue/allotment of shares & options , page-8

re: rights issue - mcneil's selling down NightStalker “Now wouldn't YOU take advantage of the current share price if you were holding all those shares? Smart move,”

G’day Night. I accept that people have different views on these matters. Allow me to put another spin on the subject.

Is it a smart move by the chairman and his Director son to be NET SELLERS at a time of a new capital raising issue? (Btw Peter also sold another lot of MMN a few months ago.) No I don’t think so. Consider this:

In a letter to Shareholders dated 7 September 2004 the Chairman wrote: “I ask you to support the Issue to ensure successful plant construction and mine development”
In other words he asked shareholders to further increase their financial investment and financial exposure (putting at risk capital) to the company in order to get things moving.
At the same time, as it now turns out, he and his family reduced their financial exposure to the company! Smart move I ask? Certainly not good timing.

On and off I have been associated with this company for a number of years now. I like the future of silver and MMN is one of the few pure plays around.
I liked Manmin’s style – general meetings in a church hall with tea bags and cookies. That was fine – let’s not waste. But nothing seems to change where it counts.
When I first met with Bob McNeil some years ago at a junior miner’s conference he was very convincing. Presented a great story using plain old overhead transparencies when others were using fancy PowerPoint look-alike presentations. “The silver is there, just a matter of getting on with it and mine it out. We need a few bob, help us out”. (Still using the same old photo of Dennis standing in a cut out section at the Hills)

On my desk are several Macmin prospectuses from years gone bye asking shareholders for more money – this company has turned into a professional fund raising mob that would leave ‘Boys Town’ and 'Endeavour Foundation' for dead.

Here we are a good deal of years later. Still just burning cash – that is shareholders funds we are talking about. We know that there are silver in “them there hills”. POS makes it profitable to mine it now and Macmin still keep it in the ground.
This latest share issue is not enough Bob tells us. More funds will have to be raised or Macmin will call on the line of credit. Expensive money, strict and harsh Terms & Conditions. Not in shareholders interest.
Bob, get on with it and mine the bloody stuff.
Get a sense of urgency going.
Macmin is not an employment agency.
Making profits and paying shareholders dividend is the name of the game.

Smart move for the Chairman to be a net seller right now? – not in my book.

Please put your views –
and play the ball not the man.
All the best.

PS. Bob selling 1.6mil over a few days must also have impacted the MMN shareprice, when silver was having a mini run and the sp tried to get up.