Hi Boston Yes someone wrote to the ASX to have them clarify the...

Hi Boston
Yes someone wrote to the ASX to have them clarify the position in relation to the announcement made in October last year concerning the $40 mio deal with Varmco and the deposit of $1mio. In a nut shell the ASX simply asked MXC if this deal was still on. While proof of funds is as you say basic business for a listed company, its not the function of ASX to ask every company to substantiate or prove the legitimacy of the statements they make. This comes down to a duty of care that should be exercised by the directors, otherwise there are serious penalties imposed on them personally. MXC response was that effectively the deal was still in play, so we have to assume that it is until it is not!

I am not familiar with MGCLF. Is it cross listed or dual listed? If its exactly the same company dual listed on the USA market then there can be no reason why an effective 3c price differential in $A should exist. If you look at any dual listed security anywhere on one market and convert it by the mid rate into another exchange its always about the same. This is why with such a large gap I'm surprised that traders are not selling the US market at US7.7c and buying the Australian market at A7.3c (using the mid rate of A$1.00 = US$0.7539)