Ann: Independent Expert confirms merger is Reasonable, page-19

I've been a long suffering MLM shareholder and bought in on the back of Urquhart and Sconi with one constantly delayed and the other sold for a nominal sum.  This proposal in my opinion has no benefit to current shareholders but introduces a whole load of risk. 

- Meilor owes around $20m AUD to creditors yet it's current market cap is around $17m AUD with virtually zero cash in the bank and part of the liabilities relating to forward sales of product which hasnt been produced.  

- Key risks noted by the independent expert are if recoveries fall by 7% or more over life of mine yet they also state on page 17 that the LOM predicted by Meilor to be optimistic and not consistent with historical production or of similar mines with complex ore structures such as this.

- The MD has failed to mention that the deal is not fair only reasonable and that the company is worth 25% more pre-merger than post-merger even with using the optimistic forecasts on production values.  This has been conveniently left out of any spruiking by the company and coupled with the downplay or lack of focus on the obvious risks and negatives may not be consistent with duty of care.

- The merger brings together two vastly different and incompatible projects yet management have stated the acquisition as complimentary business.

I could spend all day picking apart the report to highlight the negatives and as always everyone should do their own research but I'm struggling to find one single positive to come out of this deal.