Ann: Half Yearly Report and Accounts, page-12

These are my concerns:

1. The CR is not mentioned in the review of operations. This is strange for something in advanced stage discussions.

2. " The company is currently in advanced discussions with sophisticated investors to complete a Private Placement. The funds
are expected to be raised within 3 months from the date of the Interim Financial Report. The funds raised from the Private
Placement will be sufficient to meet all commitments for the next phase of the ferromanganese smelting business and to
satisfy creditors as at 31 December 2016"

Here they say the funds will be raised in 3 months from today = June 16.

3. "In the event the above matters are not achieved, the Consolidated Entity will be required to raise funds of approximately $1.5 million for working capital, including repayment of the Loan to Tanah Capital from debt or equity sources by May 2017."

Here they basically say we have until May before it goes under. It will be hard to raise capital that will be used to pay off a debt with debt, meaning that they plan to raise equity to pay off this loan to what appears to be Leonard's fb mate.

Summary:
From point [2] GMC indicate they are in no position to complete the CR prior to June (and we know this would have been an optimistic deadline). From point [3] GMC need 1.5M by May to fund "working capital" (codeword for paying themselves salaries).

Prepare for a capital raising so GMC management and their advisors can continue to pay themselves salaries.

I cannot understand the business judgement in appointing a national operations manager, a superintendent and the CFO to full time when there is no cash.
This has got to be the most ridiculous thing I've seen. Without the CI or the SI, the reality is there is no project. Therefore on what basis have these appointments been made. @mickloff can you see if these guys are also Leonard's fb mates.

There is no way GMC should be allowed to raise further capital $1.5m to pay off:
$0.4M loan (adding interest)
$0.5M to directors in salaries
$0.3M to its corporate advisors

That would leave $200k toward the $20M EPCM contract.

I think the equation is simple. Complete the deal with the SI or let's call it quits. The only thing than losing what you already have invested, is losing more by showing faith in a management team that is unable to even complete a binding agreement.