News: MLM Melior Announces Merger With ASX Listed Metallica Minerals Ltd, page-13

It is definitely more favorable for Melior - that said this is the spec end of the market and it takes considerable efforts to get into production... Synergies are plain to see with near term production - though will be using MLM cash to do so... Merged entity will have 882M shares which at current price of 3.1c is a MC of >$27M.... at 4.2c is a MC of $37M...

It is interesting that Melior were looking for an ASX listing - so this is just their vehicle for doing so, and an extremely good vehicle for them...

Overall I don't mind the merger - there are synergies... MLM have been paid a premium based on future NPV estimates, however nothing has been paid for the potential on silica, HMS or graphite....
- MLR have NPV8 of USD$46 (~A$64M) -- Therefore 74% of NPV share
- MLM have NPV10 of A$22M -- Therefore 26% of NPV share

Actually the more I look at it, the more I don't mind the merger - it's growing on me... Just don't like that MLM will go from a cash positive to a cash negative position, puts a lot of pressure on Goondicum succeeding