MMX - Murchison Metals
- Thread starter GreatPig
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One of the strongest bounces I have seen in awhile. Currently up 80 cents. Looking good atm with buyers building at 5.40. Just need another day like today and everything will be looking right
Looks to be another strong open coming. I think you may be right theirry. Its looking to run hard but lets see if it holds through the day. I think a lot of panickers and profit takers would of bailed in the past few days on that big dip down into the 4.40's
Still a number of guys willing to sell these down. I thought the strong bounce would of been a very positive sign and it means we could easily push to higher highs. They broke a strong resistance at 6 dollars but fell back under. Its still a lot better to see them at current levels than 4.40!
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I just read this in 'the Australian' online.
Thought any MMX holders might be interested (I don't hold)
INVESTORS in iron ore players getting up and running in Western Australia's mid-west might soon need to re-crunch their numbers. It had been assumed that companies not near railways would have to build their own and, indeed, Murchison Metals is working on such a study. There is also the Yilgarn Infrastructure Group, which fancies itself as the big port-rail player in the region, but it now faces having its nose put out of joint.
Bab**** & Brown Infrastructure Group has entered the picture. It controls WestNet Rail, the 5100km railway network in WA. And it wants to build its own iron ore lines in the mid-west - serving Murchison's Jacks Hill mine near Meekatharra, passing the proposed Midwest Corp Weld Range development, with a branch out to Wiluna where Golden West Resources is working up a resource.
This means B&B would be putting up the capital for rail developments, not the individual mining companies - a huge slice off mine capital costs.
Thought any MMX holders might be interested (I don't hold)
INVESTORS in iron ore players getting up and running in Western Australia's mid-west might soon need to re-crunch their numbers. It had been assumed that companies not near railways would have to build their own and, indeed, Murchison Metals is working on such a study. There is also the Yilgarn Infrastructure Group, which fancies itself as the big port-rail player in the region, but it now faces having its nose put out of joint.
Bab**** & Brown Infrastructure Group has entered the picture. It controls WestNet Rail, the 5100km railway network in WA. And it wants to build its own iron ore lines in the mid-west - serving Murchison's Jacks Hill mine near Meekatharra, passing the proposed Midwest Corp Weld Range development, with a branch out to Wiluna where Golden West Resources is working up a resource.
This means B&B would be putting up the capital for rail developments, not the individual mining companies - a huge slice off mine capital costs.
Hi guys. Im disclosing I exited MMX at 5.73. The traders are in this one for the short term..up and down like a yoyo. My price target still stands but thats a longer term price target. I will have a re-entry if it continues to drop back. Happy trading.
Murchison vows to fight claim on mine
15th September 2007, 9:45 WST
http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=40530
Emerging Mid-West miner Murchison Metals has vowed to fight any attempts by a one-time failed explorer to claim ownership of its flagship Jack Hills mine and a potential $18 billion iron ore booty.
Murchison executive chairman Paul Kopejka yesterday hit out at former Perth-based explorer Chameleon Mining which disclosed that it “may have a claim” against Murchison “based on the material and records available to it”.
It is understood the claim relates to the ownership of the Jack Hills tenements and dates back to events related to various companies and corporate promoters before Murchison was even formed in 2005.
“These potential claims vary in nature and quantum,” Chameleon said. “Given the breadth of documentation and range of issues involved, the company will work with its legal advisers to ensure that the advice and/ or any potential actions are dealt with in a timely fashion.”
But Mr Kopejka said the claim was baseless.
“The facts are that Chameleon wrote to Murchison last year outlining the basis of its so-called claim,” he said. “This correspondence was reviewed by Murchison’s lawyers and deemed to have no foundation whatsoever.”
Mr Kopejka said the letter referred to events that occurred between 2002 and 2004 before Chameleon went into liquidation and prior to the appointment of Murchison’s current directors. He said the liquidators’ report on the affairs of Chameleon made no reference to it having any claim against Murchison.
“Murchison has been provided with no further correspondence since last year by Chameleon, and this latest announcement appears to be a feeble attempt to pressure Murchison on the matter publicly,” Mr Kopejka said.
“It is important to understand that Chameleon has not commenced any claim against Murchison to date.
“Any proceedings that may be commenced by Chameleon will be regarded by Murchison as frivolous and vexatious and will be vigorously defended.”
Chameleon rejoined sharemarket trading this week after a three-year suspension forced by the company’s fall into liquidation. The company has since been recapitalised and has a new board which includes Siew Hong Koh, John Chambers, lawyer Anthony Karam and former Jupiter Mines director David Evans. Mr Karam said yesterday the company was “mindful of not overstating or understating our position”.
“We have got a lot of information and we are just looking to get to the bottom of it,” he said.
The NSW Supreme Court put Chameleon into liquidation in December 2004 after a former consultant geologist to Chameleon, Robert McLellan, cried foul about an alleged $200,000 debt and the company’s dealings with a group known as Zenith Development.
15th September 2007, 9:45 WST
http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=40530
Emerging Mid-West miner Murchison Metals has vowed to fight any attempts by a one-time failed explorer to claim ownership of its flagship Jack Hills mine and a potential $18 billion iron ore booty.
Murchison executive chairman Paul Kopejka yesterday hit out at former Perth-based explorer Chameleon Mining which disclosed that it “may have a claim” against Murchison “based on the material and records available to it”.
It is understood the claim relates to the ownership of the Jack Hills tenements and dates back to events related to various companies and corporate promoters before Murchison was even formed in 2005.
“These potential claims vary in nature and quantum,” Chameleon said. “Given the breadth of documentation and range of issues involved, the company will work with its legal advisers to ensure that the advice and/ or any potential actions are dealt with in a timely fashion.”
But Mr Kopejka said the claim was baseless.
“The facts are that Chameleon wrote to Murchison last year outlining the basis of its so-called claim,” he said. “This correspondence was reviewed by Murchison’s lawyers and deemed to have no foundation whatsoever.”
Mr Kopejka said the letter referred to events that occurred between 2002 and 2004 before Chameleon went into liquidation and prior to the appointment of Murchison’s current directors. He said the liquidators’ report on the affairs of Chameleon made no reference to it having any claim against Murchison.
“Murchison has been provided with no further correspondence since last year by Chameleon, and this latest announcement appears to be a feeble attempt to pressure Murchison on the matter publicly,” Mr Kopejka said.
“It is important to understand that Chameleon has not commenced any claim against Murchison to date.
“Any proceedings that may be commenced by Chameleon will be regarded by Murchison as frivolous and vexatious and will be vigorously defended.”
Chameleon rejoined sharemarket trading this week after a three-year suspension forced by the company’s fall into liquidation. The company has since been recapitalised and has a new board which includes Siew Hong Koh, John Chambers, lawyer Anthony Karam and former Jupiter Mines director David Evans. Mr Karam said yesterday the company was “mindful of not overstating or understating our position”.
“We have got a lot of information and we are just looking to get to the bottom of it,” he said.
The NSW Supreme Court put Chameleon into liquidation in December 2004 after a former consultant geologist to Chameleon, Robert McLellan, cried foul about an alleged $200,000 debt and the company’s dealings with a group known as Zenith Development.
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Does anyone know if the MMX/Mitsubishi agreement was signed yesterday - thought I saw a post to the company website a while back that it was to be formalized Sept. 19th...?
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MITSUBISHI AND MURCHISON EXECUTE DEFINITIVE AGREEMENTS FOR WORLD
CLASS IRON ORE MINING AND INFRASTRUCTURE BUSINESSES
Highlights
• Mitsubishi and Murchison complete joint venture arrangements announced on 18
June 2007
• Mitsubishi acquires 50% of Murchison’s iron ore assets
• Mitsubishi and Murchison establish 50:50 infrastructure business to develop new
Mid West rail and port infrastructure
• Mitsubishi to make first payment of A$150 million on 27 September
Tokyo, Japan, 19 September 2007 – Murchison Metals Limited (Murchison) is pleased to
announce the signing of binding agreements with Mitsubishi Development Pty Ltd, a wholly
owned subsidiary of Mitsubishi Corporation (Mitsubishi), to establish new iron ore mining
and infrastructure businesses in the Mid West region of Western Australia.
The definitive agreements were signed at a ceremony in Tokyo today attended by senior
representatives of Mitsubishi and Murchison. The event was also witnessed by senior
officials from the Australian Embassy and a representative of the Western Australian
government.
Murchison Executive Chairman Paul Kopejtka said that the signing of the agreements was
a momentous step forward for Murchison.
“The signing of these agreements ensures that Murchison is now much closer to realising
its ambition of becoming a world class iron ore and infrastructure company in joint venture
with Mitsubishi,” Mr Kopejtka said.
“Mitsubishi is Japan’s largest general trading company and we are understandably proud to
have them as our partner to accelerate the expansion of the Jack Hills Project and develop
the associated rail and port infrastructure.”
“We are delighted to have signed binding transaction documents today and we now look
forward to working with Mitsubishi to rapidly implement our iron ore and infrastructure
plans.”
Under the agreements, Mitsubishi has agreed to acquire 50% of Crosslands Resources
Limited (formerly known as Iron Jack Ltd) (Crosslands) the company that holds
Murchison’s iron ore mining business including its flagship Jack Hills Project. The
agreements also establish new jointly held independent infrastructure businesses to
develop the Mid West rail and port infrastructure (Oakajee Port & Rail (OPR)).
As previously announced, under the agreements, Mitsubishi will make two payments to
Crosslands to acquire a 50% interest in it. The first payment of A$150 million is expected
to be made on 27 September 2007.
“With our strong cash position and binding agreements with Mitsubishi, we now have
transparent funding arrangements in place to deliver the proposed expansion of the Jack
Hills Project and the associated rail and port infrastructure,” Mr Kopejka said.
“OPR will benefit enormously from gaining immediate access to the significant amount of
infrastructure feasibility studies already completed by Murchison as well as the strong
financial arrangements now in place. OPR is on track to provide a fully funded financial
infrastructure development proposal to the State Government.”
“This is the beginning of a new and exciting chapter for Murchison and we look forward to
reporting our progress with Mitsubishi in the near future.”
The binding documents signed today comprise a number of separate agreements between
Murchison and Mitsubishi to give effect to the agreement announced to the market on 18
June 2007.
Crosslands
Under the definitive agreements signed today, Mitsubishi is acquiring 50% of Crosslands,
the company that holds Murchison’s iron ore mining business including its flagship Jack
Hills Project, a potentially world class operation planned to expand production up to 25
million tonnes per annum of iron ore.
As announced on 18 June 2007, Mitsubishi will make two payments to acquire 50% of
Crosslands. The first payment of A$150 million (the “Initial Payment”) is expected to be
paid to Crosslands on 27 September 2007. Approximately one third of this Initial Payment
will be paid to Murchison via the repayment of intercompany debts with the balance used to
repay external debt and fund future feasibility study expenses.
Following receipt of this payment by Crosslands, it will be owned 50% by Murchison and
50% by Mitsubishi. It is expected that this equity injection will provide Crosslands with
sufficient cash reserves to fully fund the completion of all studies required for both the
expansion of the Jack Hills Project and the required rail and port infrastructure.
A second and more substantial payment, payable when construction of the expanded Jack
Hills Project is set to commence, will be payable to Crosslands based on a value of the
Jack Hills Project at that time derived using the results of the bankable feasibility study for
the Jack Hills Project and applying certain agreed assumptions.
From today, Crosslands will be operated as an independent company with its own
management team comprising existing Murchison operational personnel, new employees
and additional staff from Mitsubishi. The founding CEO of Crosslands will be appointed as
soon as possible.
Murchison and Mitsubishi will each have 3 representatives on the Board of Crosslands.
Oakajee Port & Rail (OPR)
The agreements signed today also provide for the establishment of OPR. OPR is a new
infrastructure business to be managed by an experienced independent infrastructure
management team. The founding CEO of OPR will also be appointed as soon as possible.
OPR will seek the right to develop new rail and port infrastructure to transport expanded
production from Jack Hills and other regional mines to a new deepwater port to be built
north of Geraldton at Oakajee. Murchison has in place the most advanced infrastructure
development feasibility studies for the Mid West region encompassing all aspects of the
development, including environmental, Aboriginal heritage and economic aspects. OPR
will inherit these studies and is therefore ideally placed to develop the required
infrastructure in the shortest possible timeframe.
Under the agreements signed between Murchison and Mitsubishi today, both parties have
agreed to finance the completion of OPR’s bankable feasibility study into the development
of the new rail and port infrastructure.
In addition, Mitsubishi has agreed to manage the arranging of limited recourse project
finance for the funding required to be provided by Murchison to OPR. If required,
Mitsubishi will also provide Murchison with additional funding support through the provision
of subordinated loans and an overrun facility up to a combined aggregate of A$400 million
to allow Murchison to meet its financial commitments should additional funding be required
on final approval to proceed to construction.
OPR is now working independently of Crosslands to complete a comprehensive technical
and financial infrastructure development proposal to be presented to the State
Government.
Murchison has been advised by Gresham Advisory Partners Limited and Freehills.
Mitsubishi has been advised by Macquarie Bank Limited, The Minera Group and Mallesons
Stephen Jaques.
CLASS IRON ORE MINING AND INFRASTRUCTURE BUSINESSES
Highlights
• Mitsubishi and Murchison complete joint venture arrangements announced on 18
June 2007
• Mitsubishi acquires 50% of Murchison’s iron ore assets
• Mitsubishi and Murchison establish 50:50 infrastructure business to develop new
Mid West rail and port infrastructure
• Mitsubishi to make first payment of A$150 million on 27 September
Tokyo, Japan, 19 September 2007 – Murchison Metals Limited (Murchison) is pleased to
announce the signing of binding agreements with Mitsubishi Development Pty Ltd, a wholly
owned subsidiary of Mitsubishi Corporation (Mitsubishi), to establish new iron ore mining
and infrastructure businesses in the Mid West region of Western Australia.
The definitive agreements were signed at a ceremony in Tokyo today attended by senior
representatives of Mitsubishi and Murchison. The event was also witnessed by senior
officials from the Australian Embassy and a representative of the Western Australian
government.
Murchison Executive Chairman Paul Kopejtka said that the signing of the agreements was
a momentous step forward for Murchison.
“The signing of these agreements ensures that Murchison is now much closer to realising
its ambition of becoming a world class iron ore and infrastructure company in joint venture
with Mitsubishi,” Mr Kopejtka said.
“Mitsubishi is Japan’s largest general trading company and we are understandably proud to
have them as our partner to accelerate the expansion of the Jack Hills Project and develop
the associated rail and port infrastructure.”
“We are delighted to have signed binding transaction documents today and we now look
forward to working with Mitsubishi to rapidly implement our iron ore and infrastructure
plans.”
Under the agreements, Mitsubishi has agreed to acquire 50% of Crosslands Resources
Limited (formerly known as Iron Jack Ltd) (Crosslands) the company that holds
Murchison’s iron ore mining business including its flagship Jack Hills Project. The
agreements also establish new jointly held independent infrastructure businesses to
develop the Mid West rail and port infrastructure (Oakajee Port & Rail (OPR)).
As previously announced, under the agreements, Mitsubishi will make two payments to
Crosslands to acquire a 50% interest in it. The first payment of A$150 million is expected
to be made on 27 September 2007.
“With our strong cash position and binding agreements with Mitsubishi, we now have
transparent funding arrangements in place to deliver the proposed expansion of the Jack
Hills Project and the associated rail and port infrastructure,” Mr Kopejka said.
“OPR will benefit enormously from gaining immediate access to the significant amount of
infrastructure feasibility studies already completed by Murchison as well as the strong
financial arrangements now in place. OPR is on track to provide a fully funded financial
infrastructure development proposal to the State Government.”
“This is the beginning of a new and exciting chapter for Murchison and we look forward to
reporting our progress with Mitsubishi in the near future.”
The binding documents signed today comprise a number of separate agreements between
Murchison and Mitsubishi to give effect to the agreement announced to the market on 18
June 2007.
Crosslands
Under the definitive agreements signed today, Mitsubishi is acquiring 50% of Crosslands,
the company that holds Murchison’s iron ore mining business including its flagship Jack
Hills Project, a potentially world class operation planned to expand production up to 25
million tonnes per annum of iron ore.
As announced on 18 June 2007, Mitsubishi will make two payments to acquire 50% of
Crosslands. The first payment of A$150 million (the “Initial Payment”) is expected to be
paid to Crosslands on 27 September 2007. Approximately one third of this Initial Payment
will be paid to Murchison via the repayment of intercompany debts with the balance used to
repay external debt and fund future feasibility study expenses.
Following receipt of this payment by Crosslands, it will be owned 50% by Murchison and
50% by Mitsubishi. It is expected that this equity injection will provide Crosslands with
sufficient cash reserves to fully fund the completion of all studies required for both the
expansion of the Jack Hills Project and the required rail and port infrastructure.
A second and more substantial payment, payable when construction of the expanded Jack
Hills Project is set to commence, will be payable to Crosslands based on a value of the
Jack Hills Project at that time derived using the results of the bankable feasibility study for
the Jack Hills Project and applying certain agreed assumptions.
From today, Crosslands will be operated as an independent company with its own
management team comprising existing Murchison operational personnel, new employees
and additional staff from Mitsubishi. The founding CEO of Crosslands will be appointed as
soon as possible.
Murchison and Mitsubishi will each have 3 representatives on the Board of Crosslands.
Oakajee Port & Rail (OPR)
The agreements signed today also provide for the establishment of OPR. OPR is a new
infrastructure business to be managed by an experienced independent infrastructure
management team. The founding CEO of OPR will also be appointed as soon as possible.
OPR will seek the right to develop new rail and port infrastructure to transport expanded
production from Jack Hills and other regional mines to a new deepwater port to be built
north of Geraldton at Oakajee. Murchison has in place the most advanced infrastructure
development feasibility studies for the Mid West region encompassing all aspects of the
development, including environmental, Aboriginal heritage and economic aspects. OPR
will inherit these studies and is therefore ideally placed to develop the required
infrastructure in the shortest possible timeframe.
Under the agreements signed between Murchison and Mitsubishi today, both parties have
agreed to finance the completion of OPR’s bankable feasibility study into the development
of the new rail and port infrastructure.
In addition, Mitsubishi has agreed to manage the arranging of limited recourse project
finance for the funding required to be provided by Murchison to OPR. If required,
Mitsubishi will also provide Murchison with additional funding support through the provision
of subordinated loans and an overrun facility up to a combined aggregate of A$400 million
to allow Murchison to meet its financial commitments should additional funding be required
on final approval to proceed to construction.
OPR is now working independently of Crosslands to complete a comprehensive technical
and financial infrastructure development proposal to be presented to the State
Government.
Murchison has been advised by Gresham Advisory Partners Limited and Freehills.
Mitsubishi has been advised by Macquarie Bank Limited, The Minera Group and Mallesons
Stephen Jaques.
michael_selway
Coal & Phosphate, thats it!
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- 2
Hi does MMX have a limited mine life?
Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS -2.0 -6.1 0.7 6.3
DPS 0.0 0.0 0.0 0.0
thx
MS
Source:CNNMoney.com Put in murchison metals into google. Came up with this
Australian shares close higher led by BHP Billiton; index at record - UPDATE
September 25, 2007: 03:25 AM EST
Emerging iron ore miner Murchison Metals (OOTC:MUMTF) surged 28 cents or 6.2 percent to 4.79 on talk it might merge with Midwest Corp, another iron ore company. Midwest rose 16 cents or 5.2 percent to 3.26 dollars. Both companies hope to develop iron ore projects in the mid-west region of Western Australia.
Any one else heard this? Makes huge sense for MMX. Takes the WA Gov out of play. But the two aren't friendly after MIS ditched MMX on rail/port in the first place.
Australian shares close higher led by BHP Billiton; index at record - UPDATE
September 25, 2007: 03:25 AM EST
Emerging iron ore miner Murchison Metals (OOTC:MUMTF) surged 28 cents or 6.2 percent to 4.79 on talk it might merge with Midwest Corp, another iron ore company. Midwest rose 16 cents or 5.2 percent to 3.26 dollars. Both companies hope to develop iron ore projects in the mid-west region of Western Australia.
Any one else heard this? Makes huge sense for MMX. Takes the WA Gov out of play. But the two aren't friendly after MIS ditched MMX on rail/port in the first place.
Noticed this post a while ago, with Merill Lynch having 9.80 price target.
Why is this stock trading so low based on this evaluation?, pretty sure its a quality stock. anyway bought in a small parcel at 5.02 yesterday, has closed at 4.90 today.
Have an IO price increase been factored into this stock at 5.00, believe it looks undervalued?
aaronphetamine
E for Electro
- Joined
- 9 May 2007
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- 0
I brought into this stock again today as well at $4.90, I took wonder why this stock isnt any higher, The past 3 days havent been good to MMX, coming down from around 5.40 to 4.85 today, but its been good for me to pick up a bargain !
It reached highs of around 6.50 back in july, i beleive it will so again !
It reached highs of around 6.50 back in july, i beleive it will so again !
Midwest's major shareholders reject bid
November 7, 2007 - 1:59PM
http://www.smh.com.au/news/Business/Midwests-major-shareholders-reject-bid/2007/11/07/1194329291246.html
Most of Midwest Corporation Ltd's top 20 shareholders have indicated they will not accept Murchison Metals Ltd's $1 billion-plus scrip takeover offer.
Murchison's shares were one cent, or 0.2 per cent, higher at $4.91 at 1338 AEDT Wednesday, while Midwest's shares had gained seven cents, or 1.43 per cent, to $4.98.
Shareholders with a combined interest of 45 per cent of Midwest's shares have confirmed in writing that they believe Murchison's offer materially undervalues Midwest relative to Murchison.
These shareholders include Midwest directors Dato David Law, Stephen de Belle and Jesse Taylor.
Midwest said in a statement that the major shareholders' stance had two immediate implications for any Midwest shareholders considering the offer, namely that synergy benefits were unlikely to be achieved.
Both companies are developing iron ore projects in Western Australia's mid west, and want new port and rail infrastructure in the region to bring ore to market.
Murchison has argued that synergies would be achieved by combining the two entities rather than continuing to develop adjacent projects and pursuing competing infrastructure proposals.
According to recent research by UBS, that between $300 million and $400 million in synergies could be created through a merged company.
"In our view, full delivery on synergies will not be achieved unless Murchison acquires 100 per cent control," Midwest said in the statement.
"As Murchison cannot achieve the required 80 per cent acceptances under the current offer, no capital gains tax rollover relief will be available to Midwest shareholders accepting the offer.
"Given the very strong performance in the Midwest share price, shareholders who accept the offer could get a very large tax bill."
Midwest said the offer may not appropriately recognise the target's fair value, given it would contribute 71 per cent of the combined group's direct shipping ore resource but its shareholders would only own 31 per cent of the combined group.
Direct shipping ore (DSO) is the most prized, as it can be shipped to customers as is, without any need for processing.
The companies have almost the same sized reserves - the part of a resource that is deemed mineable - with Murchison holding 8.5 million tonnes compared with Midwest's reserve of 8.4 million tonnes.
However, Midwest has 132.6 million tonnes of DSO while Murchison has 50.5 million tonnes of DSO.
Midwest's board is currently finalising its review of the offer and its recommendation to shareholders, which will be included in its target's statement to be sent to shareholders in coming weeks.
"However, shareholders should note that the offer is now open and unconditional which means any acceptance by you is final," Midwest said in the statement.
The Midwest board continues to urge its shareholders to take no action in relation to the offer.
November 7, 2007 - 1:59PM
http://www.smh.com.au/news/Business/Midwests-major-shareholders-reject-bid/2007/11/07/1194329291246.html
Most of Midwest Corporation Ltd's top 20 shareholders have indicated they will not accept Murchison Metals Ltd's $1 billion-plus scrip takeover offer.
Murchison's shares were one cent, or 0.2 per cent, higher at $4.91 at 1338 AEDT Wednesday, while Midwest's shares had gained seven cents, or 1.43 per cent, to $4.98.
Shareholders with a combined interest of 45 per cent of Midwest's shares have confirmed in writing that they believe Murchison's offer materially undervalues Midwest relative to Murchison.
These shareholders include Midwest directors Dato David Law, Stephen de Belle and Jesse Taylor.
Midwest said in a statement that the major shareholders' stance had two immediate implications for any Midwest shareholders considering the offer, namely that synergy benefits were unlikely to be achieved.
Both companies are developing iron ore projects in Western Australia's mid west, and want new port and rail infrastructure in the region to bring ore to market.
Murchison has argued that synergies would be achieved by combining the two entities rather than continuing to develop adjacent projects and pursuing competing infrastructure proposals.
According to recent research by UBS, that between $300 million and $400 million in synergies could be created through a merged company.
"In our view, full delivery on synergies will not be achieved unless Murchison acquires 100 per cent control," Midwest said in the statement.
"As Murchison cannot achieve the required 80 per cent acceptances under the current offer, no capital gains tax rollover relief will be available to Midwest shareholders accepting the offer.
"Given the very strong performance in the Midwest share price, shareholders who accept the offer could get a very large tax bill."
Midwest said the offer may not appropriately recognise the target's fair value, given it would contribute 71 per cent of the combined group's direct shipping ore resource but its shareholders would only own 31 per cent of the combined group.
Direct shipping ore (DSO) is the most prized, as it can be shipped to customers as is, without any need for processing.
The companies have almost the same sized reserves - the part of a resource that is deemed mineable - with Murchison holding 8.5 million tonnes compared with Midwest's reserve of 8.4 million tonnes.
However, Midwest has 132.6 million tonnes of DSO while Murchison has 50.5 million tonnes of DSO.
Midwest's board is currently finalising its review of the offer and its recommendation to shareholders, which will be included in its target's statement to be sent to shareholders in coming weeks.
"However, shareholders should note that the offer is now open and unconditional which means any acceptance by you is final," Midwest said in the statement.
The Midwest board continues to urge its shareholders to take no action in relation to the offer.
Sold this stock on Monday.
My analysis was that on 11/10 we had very high volume and the days following that the price fell away.
October 31st again very high volume and a very narrow price spread - smart money getting out.
Friday prices fell away again confirming a double top and complete lack of interest by any smart money.
Good volume on the 5th and the result of that is to further push prices down.
That double top also showed to be a wave (5) failure IMHO
Cheers
My analysis was that on 11/10 we had very high volume and the days following that the price fell away.
October 31st again very high volume and a very narrow price spread - smart money getting out.
Friday prices fell away again confirming a double top and complete lack of interest by any smart money.
Good volume on the 5th and the result of that is to further push prices down.
That double top also showed to be a wave (5) failure IMHO
Cheers
Share seems to be being sold a fair bit at he moment.. any reasons?
here's an intersting post from the MIS forum.
https://www.aussiestockforums.com/forums/showpost.php?p=223252&postcount=31
Also their web-site is down.. http://www.mml.net.au
here's an intersting post from the MIS forum.
https://www.aussiestockforums.com/forums/showpost.php?p=223252&postcount=31
Also their web-site is down.. http://www.mml.net.au
