When an ASX announcement was made last year, that a notice under Section 249D was received, a request by shareholders for the Company to hold a meeting -ASX 15/10 - I took little notice and interest.
Some time latter, I emailed the SAG, that I would not be supportive of their cause and would support the company's merger and future plans.
I, like many other perhaps, do not like making noise and I like a firm hand on the rudder and a steady course to be sailed and trust that the board has the best interest of the company and shareholders at heart.
It was not until I read the request to approve an entitlement package totaling
$ 614,566 that I thought why would I?
The Melior merger had not been finalised and income had not started, so why would one feel entitled to this sort of remuneration?
It was then that I started to do some research.
I discovered that the shares in my company, 322,400,000millions, would be increased to 1,103,652,580 in a share deal, plus a requested 10% issue of shares for capital raising, another 110,365,258, bringing the total to just over 1,2 Billion shares.
And why a capital raising as the project would generate its own income?
The production sums on Goondicum over the 9 year life of the mine US$59,700.000 or US $ 6,633.333 = A$ 9,212. 963 per annum over 1.2 billion shares which equates to $0.007677 earnings per share.
The Uruqhart projected cash flow (ASX12/9) yearly shipment 1,3000.000 tones@ A$10.50 = A$ 13,650.000 per annum over 1.2 billion shares which equates to
$0.011375 earnings per share.
As a stand alone Company - un-merged - MLM's annual net earning of A$13,650.000 over 322,400.000shares equated to A$ 0.042338 per share.
So where does the logic, that the Merger would be beneficial for MLM shareholders come from in looking at the above earnings?
It is clear this is/was a bad deal for shareholders, supported by a board for reasons not understood, a board telling us how transformational it was, a board clearly not with shareholders best interest at heart.
I am of the opinion that it is due to SAG action, that Melior's board, after the remuneration package was defeated, decided that MLM shareholders approval of the merger would not be forthcoming and decided not to proceed with the Merger.
I checked the ASX announcement and the Receipt of Section249 Notice was on 15/10 and amended notice was lodged on the 26/10. The Shareholders Action Group request for a General Meeting to be held by the Company under ASIC rules.
The Company advised that it will comply with its obligations under the Corporation Act.
What is does not say is that it will co-operate and from what I have gleaned, it seems that the Company or the current board is only obstructive to this process and is making it legally difficult for it to proceed, it is using shareholders/company money to obstruct this democratic shareholders right.
I think that shareholders, supportive of the SAG should do more than just give them their vote and email the Company and express their opinion and or displeasure politely
