trade halt, page-14

I have quoted from the media editorial with my own comments in bold...

“The link between the two companies is Metaliko managing director Dr Michael Ruane, which holds more than 30% of Metaliko and 7.6% of Echo.”

According to the following link, Michael Ruane should have 11.35% of EAR and more than 30% of MKO.

http://www.asx.com.au/asxpdf/20160526/pdf/437hncsbsm4b9j.pdf

IMO It is logical that MR will extract maximum value for MKO holders and hopefully will see that the plant is valued at its true worth which more than twice MKO market cap and is key to the merger.

"The companies are similarly sized – Echo has a market capitalisation of around $A38 million, while Metaliko is valued at $31.3 million. Metaliko holds the Yandal gold project in the north-eastern Goldfields, which includes the Bronzewing mill, while Echo holds the nearby Julius deposit, which has a 197,621 ounce gold resource".

Ignoring the synergies for now, a 50/50 deal values MKO at just $0.078. Synergies could add 20% or more but may take time to materialize. IMO MKO plant is worth around $20m over and above market cap giving MKO 65% of total combined entity, or $0.16 per share for MKO. There could be justification to split the difference and settle for $0.12 and benefit from longer term synergies but lets see what MR comes up with.