Metanor Resources MEAOD

RE:RE:RE:RE:re--consolidation

[JRaffles]

A financing is unlikely to come before the March SR proposed in order to approave a 10:1 rollback, otherwise a financing will be less atractive to investors, in the knowledge that their new shares will be immently rolled back.

Old shareholders will most likely be resigned to the fact that they have already lost up to 90% of their original investment and the company is in a catch 22 position, in that it cannot generate sufficient funds to satisfy the debenture with the present production.  In this situation, the most favourable fund raising scenario would be:-

1. After existing shareholders have rolled back the shares to approximately 50m shares.
2. A BL and Barry resource has been updated, as has already been alluded to this quarter.
3. The funds to be raised will put the company on a footing to make it fully cash generating without the need for any future financing by way of Barry and to repay the debentures.  The present debentures were issued when the board misjudged the set up and working capital costs when the SSL funds were provide din 2011.
4. If new equity capital was provided substantially by, say Sprott, then a fundamental board change would potentially generate enthusiasm.

in summary, to look at the glass half full rather than half empty:-

• If fund raising, rather than a take over were to be the boards preferred route of developing Barry, the timing of the fund raising should be not earlier than April 2017.  This would ensure that investors would have up to date reserves information.
• If updated reserves, plus an improving gold price were to coincide, then the pre share rollback price could be near 0.10 (it was 0.13 last year). This would give a SP of a buck on a 10:1 rollback. 
• After crystallising old shareholders losses through a rollback, the company could look forward to certainty of Barry production and no debt which could uplift the SP for both old and new shareholders. The board has, for once and all, get into a position of delivering profitable output without the prospect of needing future PP's in order to pay their salaries.