1. Does MRV Expect that it will continue to have negative operating cash flows for
the time and, if not, why not?
The Company at the same time as releasing its 5B, also release two other documents
being the Granite Belts Operational Update and also the Quarterly Report. Both of
these documents have highlighted the Company will seek to enter cash generation by
way of Silver sales from its Granite Belt project, in the month of February 2019 which
is the same quarter as in question currently.
Furthermore, the Company has since, upon 8 of February 2019, further updated the
market that the Company expects to be into Silver production in February and steady
state operations are expected in April 2019, allowing for forecasts and projections in
the April quarter of 2019.
Whilst the company can not specifically state with certainty the amount of revenue it
expects in the January 2019 quarter, it does believe the Silver sales will go toward
alleviating any short fall for the quarter, along with a debt restructure as outlined below.
2. Has MRV taken any steps, or does it propose to take any steps, to raise further
cash to fund its operations and, if so, what are those steps and how likely does
it believe that they will be successful?
The Company is well advanced upon renegotiation of funding, which it announced in
its Quarterly report released upon 17 January 2019. This process has moved to the
exchange of draft, binding terms already undertaken.
It is highly likely this transaction will be completed in the coming days and again highly
likely to alleviate any or all immediate cash flow and operating cost concerns.
3. Does MRV expect to be able to continue its operations and to meet its business
objectives and, if so, on what basis?
Please refer to responses to question 1 and question 2.
4. Please confirm that MRV is complying with Listing Rule 3.1 and that there is no
information about it current financial condition that should be given to ASX in
accordance with that rule that has not already been released to market.
We are in full compliance with listing Rule 3.1 and the market is fully aware of all
matters pertaining to operational outcomes and also funding requirements.
5. Please confirm that MRV’s responses to the questions above have been
authorized and approved under its published continuous disclosure policy or
otherwise by its board or an office of MRV with delegated authority from the
board to respond to ASX on disclosure matters.
As Chairman of Moreton Resources Limited, I am authorized by the board to respond
to the ASX upon such queries.
I hope this response is sufficient and welcome any follow up queries to alleviate the concerns
of the AS
MRV Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
