Metanor Resources MEAOD

RE: Mgmt is desperate

[JRaffles]

Who twisted RP's arm? Not only am I angry at the SP, but now I feel mugged! Was SSL behind this? I bet we'll never know why this deal was struck, when they certainly could have waited.

Let’s look at some recent events ……

 

• Between June and August SSL traded in the range of $8-$9.
• In August SSL directors announced that SSL has commenced trading on US markets and the SP shot up from circa $9 to a peak of $10.7.
• Only after preparing the sp for this good news did the SSL directors issued a $75m placed share issue at $10. This has subsequently been increased to $135m. In this way SSL shareholders received the benefit of additional funding for future investments without a major hit on their former $8 - $9 share price. This is in contrast to Metanor, where the good news may follow the low debenture conversion price made available to the debenture holders.

If Metanor were to be considered to be subservient to SSL, as could be inferred from the question, then could the following scenario be a possibility …..

 

• SSL could have pressured a weak Metanor management into extending drilling in order to provide SSL with an extended stream of gold.
• The effect of delaying Metanor’s feasibility further weakens its share price and therefore forced it into premature high cost working capital fund raising. According to tictactoe, Metanor will be making announcements in the first two weeks of September?
• SSL will soon have $135m in their treasury. 
• As a result of Metanor’s increased debt and additional BL costs, which SSL do not have to pay for, then SSL could now seek a similar 20% of Barry’s gold, in the knowledge that Metanor’s financial credibility is not yet proven and accordingly, they have the cash hungry board of directors over a barrel.

The premature sinking of costs at Barry has already cost Metanor dearly and the directors should not dance like puppets to SSL in order to empire build at the cost to Metanor shareholders.