rtl comparison with riv

RTLs due diligence is in process, if it goes ok and decides to go further, they have to pay US$ 550,000 on or before 26th April to Dugal Pty ltd., a company based in Western Australia and It is sponsored by a US based investment firm Varuna Capital LLC. (With extensive contacts in the mineral industry in Mozambique, the Middle East and Southern Africa).

And as a result of this acquisition RTL and RIV would be truly neighbors, Working within 20km from Riversdales well-known Benga Coal deposit.


This would be considered a significant change to the nature and scale of the RTLs activities, so ASX listing rules require raising the funds through the issue of shares at a price of not less than $0.20 each. So RTL may require consolidation at a ratio to be determined. (My opinion 2:1 or 3:1)

Who knows? If Varuna Capital LLC wants to see Dugal keeping 250M options, they need to show their investment power and professional capabilities.

Riversdale (RIV), which was first known as Waivcom Worldwide limited (WVI) and then to Wave Capital Limited (WAV), also changed their nature and scale of activities and finalized their first acquisition of Riversdale Anthracite Colliery (Pty) ltd., in South Africa in August 2004.

And as per ASX listing rules, RIV was also required raising the funds through the issue of shares at a price of not less than $0.20 each. So at that time RIV consolidated their shares at a ratio of 30:1
(From 627,901,773 shares to 20,930,059 shares)

After that RIV share price start climbing and then in 2006 they acquired coal tenements in Mozambique, and raised further funds @ $0.97 each.

At present RTL market capital is $22,000,000 and shares @ $0.034

Where as RIV market capital is $1,895,000,000 and shares @ $9.60

The ratio of the share price between RIV and RTL is ONLY 282:1

And very soon they are going to be neighbors in the Moatize Coal Province, which is considered to be one of the largest known, undeveloped, cocking and thermal coal provinces in the world.

Market must need to justify this Neighborhood by reducing the huge ratio difference.

Good luck to holders.