boys and girls, andrew drummond replied to an investor questioning the companies ambition of tri-listing
Q: Re: Dual Listings on Namibia and Toronto I have noticed a number of Australian companies have moved away from dual/tri-listing overseas citing to "reduce costs and associated regulatory obligations". Whilst there is strong investor interests for phosphate in the above markets, I believe money can be raised locally as long as the fundamentals of the company are sound. In the long term, the same fundamentals will dictate investor interests overseas. The other question relating to this: will MAK be raising capital upon listing in TSX and namibia? Thank you in advance. --------- To Mr. Epstein & Investors,
Thank you very much for your support and interest in Minemakers, and for the questions we received on the 26 April 2010. In relation to the questions posed in regards the Company�s listing on both the Toronto Stock Exchange (�TSX�) and the Namibian Stock Exchange (�NSX�), please allow us to answer by addressing both listings separately. In relation to the listing on the TSX, the Company see the opportunity, with both the focus and activity in relation to the fertilizer space, in allowing Minemakers to both access significant funds, who have actively supported this space in North America for a long period of time and have a thorough understanding of the investment metrics in the space. It also gains exposure to a number of investment analysts who actively focus on the fertilizer sector for investment recommendations. On the TSX, the largest stock by index is an integrated fertilizer Company, Potash Corp of Saskatchewan Inc, a number of major players within the industry are also listed there. In terms of industry analysts, most if not all major broking firms have analysts who actively cover the space, increasing the potential for Minemakers to provide its shareholders research on the Company. Unfortunately due to the lack of direct active participants within the fertilizer space in Australia, we have not received the analytical coverage that we believe our project should receive. The Company has already had some hedge fund interest in its shareholder base from North America, and feel by dual listing this will allow us to bring further investment onto the Company�s register. While you are correct that some juniors have delisted from the TSX, we do see Minemakers as having projects that are more likely to be attractive to North American investors. Any new interest that we can generate there is likely to result in an increase in share price and a benefit to our mainly Australian � based shareholders. Raising the Capital we will need for mine start-up will then be less dilutionary for all our current shareholders. In terms of Namibia, among our reasons for dual listing, is a recognition of the importance of the Namibian marine phosphates project in the Company�s portfolio as well as a demonstration of our commitment to both its development and to the country as a whole. It will also allow investment from Namibian and South African domiciled companies onto Minemakers register. It is somewhat of a political decision and a NSX listing is relatively low cost. However in an emerging country it is appropriate to demonstrate a commitment to it and we believe this is likely to pay dividends far outweighing the cost. Minemakers current cash position is $34.6M and with its commitment to developing the Wonarah project will need to raise capital for the requirements to begin mining. However with our current strong cash position and mindful of dilution, we are working actively in relation to offtake and sales contracts as well as the possibility of JV partnerships to further enhance our value before we will be required to raise further capital. Again thanks for your interest, if I can assist with any further questions you have on the Company and its developments please feel free to contact me directly.
full response http://au.dearceo.net/investor-relations/1364/minemakers-limited/archive/139/re-dual-listings-on-namibia-and-toronto-i-have-noticed-a-number-of
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