You know RAF, I ask myself that same question every day. Maybe I live in hope that the new directors actually want ARV to make some money for all of us. We're in it together after all.
The sale of Munni Munni has put doubts on it though.The way I see it:
- Strategically important deposit was sold to a foreign entity (LSE:EEE)
- Ridiculously low price which raises doubt about the transaction
- First right of refusal for the other 29% likely at a low price also
- Entity is unlikely to be able to raise the funds required to develop the project
- Question about Almeera. A new entity suddenly claiming 10% of the Artemis share of Munni Munni. When was that announced? What did Almeera pay for the 10%? To whom? Who owns Almeera and what is its relationship to Empire Metals? ASIC should also check this out!
Australia and ARV shareholders are being deprived of better options that would be more beneficial to Australia and ARV, for example:
Spin off Munni Munni and the Radio Hill mill into a separate entity with its own board of directors and management, then do an IPO of the new entity.
The new listed entity would raise cash for itself and issue free shares to ARV and ARV shareholders and pay cash to ARV for RH and MM. This was done late last year by Ardea Resources (ASX:ARL) when they successfully spun off their NSW gold assets into a new company Godolphin (ASX:GRL) resulting in both ARL and GRL having plenty of funds to continue. It was good for both companies, their shareholders and for Australia - win:win:win!!!
PS: The in-ground value of PGE at current prices is approx AUD$5 billion based on the JORC 2004 numbers. Doesn't count the gold which is also there and is the quoted reason for ARV buying it for A$750,000
My email is being sent to Treasury today.
I suggest others also write if they're not happy about it. Email address is:
[email protected]
(20min delay)