Hi @rocket973 I am glad you asked and happy to share my...

Hi @rocket973

I am glad you asked and happy to share my experience.

I was not part of the consolidation, but I bought into GMC on the back of an executed agreement with Pak Marthen under which he would contribute US$10M for a 10% stake in the Project. This valued 100% of Project at $100M, And GMC's stake at US$90M, or above 10c (based on the shares available then). With the share price at 2.4c it seemed a great buy based on the fundamentals and the value Pak Marthen was ascribing to it. The share price rose to 4.4c, after which GMC requested a voluntary trading halt and suspension.

Despite this agreement being binding, and Pak paying a deposit, and the ASX requesting information about Pak's financial capacity, a lengthy delay ensued where we ere constantly told that Pak's funds were imminent. Eventually, 6 months later, no funds were received by Pak Marthen.

GMC then embarked on a massive capital raising at 1.5c with 3 for 2 free options at 0.5c, giving an effective subscription price of 0.9c, raising $12M. On resumption of trading, GMC opened at 1.2c and I was the quickest to bail. The reason I bought GMC was premised on the value that another buyer (Pak Marthen) had ascribed to the Project which no longer existed.

We now know there is a new investor, who wants to buy 25% of the project for AUD$6M (plus title to the two smelters). This values GMC's 75% of the Project at A$18M (a stark comparison to the US$90M = AUD$130M for equity stake only) that was previously on offer, despite the upturn in manganese price since Sep-16 (time of Pak's offer).

With 2.65bn shares and 1.6bn options it has an undiluted market cap around A$40M.

The funds from the $12M capital raising are finished, the current offer values GMC's share of the project at A$18M, down from A$130M and below the undiluted market cap of $40M.

And the new investor has still yet to provide GMC with the funding (as it is conditional on the fiduciary agreement being executed by 31st May).

Its because I was burnt once with GMC, that I simply want to assist any buyer or seller in understanding the true picture....

Cheers
Tt2000