Shareholder voting on buying Mengapur US$30M for MMY On Tuesday Singapore time 11:00 am Fortress Minerals's shareholders will have an extraordinary shareholder meeting to vote for buying Mengapur for US$30M.
I am 99% sure the Shareholders will approve the deal:
1. Chairmen owns 50.3% of the shares, other directors own 40.0%+ of the shares
2. Recent iron Ore prices ($150/ton+) have held up well even with Chinese New Year temporary shutting down the steel plants
3. In the Circular to Shareholders, Fortress mentioned they have arrange for a US$21M loan from their bank (along with existing cash balance) to fully fund the purchase.
After the deal is closed, MMY will have CDN$65M in working capital and cash ($0.20/share).
BTW: 11:am Singapore time is equivalent to 10:00pm ET Monday night. Will MMY management issue a NR on the result of the Fortress shareholder meeting? That will drive MMY towards at least $0.20/sh.
What's next?
1. Drilling program for Murchison or they do sell it or Joint Venture it?
If they sell all of Murchison, it is worth at least $0.10+/sh (CDN$40M). Drilling program will require time and capital, in which case you have to go back trusting MMY management and watching the gold price for the next few years.
2. Drilling program for Selinsing to find more oxide or bite the bullet and spent (USD$50M) for the Biox upgrade. Again you have to go back trusting MMY management on spenting the cash hoard and watching the gold price for the next few years.
It's been frustrating at times as we know MMY has been a mismanaged, asset rich opportunity .... I have not decided what to do yet but it will be based on the tone of MMY's next NR on their action with the CDN$65M.
GLTA