You nailed it Blue Bottle - here is my slightly more technical take on the viability of the project.
The old Monto board was experienced enough in the mineral sands game to keep hold of any land with commercial value when Monto v1 was shut down(as they did when they kept and privatised the old Monto mine with associated offtake agreements).
IMO these guys have insufficient funds to get anywhere close to bankable feasibility on what was left, barely enough to get a MDL. Mineral sands are not base metals where grades are universally accepted even based on a Jorc resource, you need a trial plant to provide a bulk shipment before any offtake contracts are obtained - price around $20m. From experience no bank will fund this. Monto v1 raised funds at 20 cents per share, a complete joke now with the current diluted re-list strategy, particularly given Monto v1 board took the new plant with them when they left for loose change to the receiver.
They may as yet be able to spin an angle to pump it, but IMO it will only be that, a pump (but I may get onboard for the short term ride). There is plenty of mineral sand resource on the Queensland mainland close to electricty and bulk fresh water needed for the separation plant and not to far from shipping. IMO rent on these island leases will recover no value, it is just a sunk cost.
Old shareholders were burnt off in Monto v1, new shareholders appear to be doing no better with Monto V2.
Surely there is better use for the remaining funds than subsidising the office rent of the registered office of the Director's other listed companies. The Geo running the project only attended half the board meetings anyway- you have to wonder if there was any substance in the others for the director fees paid.
MOO Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
