There’s never a dull moment on the AIM casino. Today the fantasy of Mkango Resources (LON: MKA) is being sung from the rafters and the roof tops as the usual well known Pump & Dumpers ratchet up the ‘Fantasmium’ on the company’s latest ‘epistle to the morons’. Read Here
The Mkango Lions were out in force roaring their approval at the loss of 75% of their companies Songwe Hill fantasmium rare earth to riches ‘Jackanory’
And what a whopper it is. Apparently Mr Dawes has got the funding for a bankable feasibility study for Songwe Hill. Now telling it as it is, because that’s why lots of people listen to Mr Daniel, on the face of it, it looks like good news and hats off to Mr Dawes for convincing Noble to pony up the cash for the BFS.
However reading the ‘epistle to the Morons’ reveals that Mkango have just basically off-loaded 75% of their ‘Flag-Ship’ asset in exchange for a Bankable Feasibility Study! That means that Mkango have just lost ownership of the licence and you’ll remember they raised circa $15-$16 million dollars convincing the Mug punters that this was the best thing since the Klondike gold rush. Now they have 25% of a licence that still requires $216,000,00 dollars to progress. So here’s a crazy question; if YOU were to put in $216,000,000 to get Songwe Hill into production what would you want? Answer? Every thing! There’s no free carry here you can award your self the crown jewels but in reality you’re not getting them. Fantasmium.
There’s no value whatsoever in this ‘deal’ for Mkango. It’s yet another pre-placing ruse. They’ve just basically gave up their rights to Songwe Hill and the key here to where this piss poor mining fantasy is headed is the news that there’s going to be a ‘NEWCO,’ yes a new company that’s because the ‘OLDCO’, the old company, Mkango, have now got zippo. They have to reinvent the next ramptastic ‘NEWCO’ which will slowly be fleshed out with yet more piss poor paper mining assets. Maybe they can get ‘Dongwe Hill’ it’s the next hill to Songwe Hill! Do you get the picture? Assets that will what? Yes you’ve guessed it. Need placing finance to keep the ‘Jackanory’ going. It is a sleight of hand the ‘Mkango Lions’ currently howling, roaring and screaming on the asylum that is London south East and twitter don’t seem to want to think about and certainly don’t understand.
So it’s say hello to ‘NEWCO’ and wave goodbye to OLDCO, Mkango and Songwe Hill. The great Rare Earth to riches fantasy has just been off-loaded to Noble. But hey it’s great news if you’re a member of the London South East venture capitalist club. Mkango have less than £250k in cash. They now basically don’t have Songwe Hill. But they do have a new company coming on stream to take the place of the old company. Rinse repeat and keep the lights on. This isn’t mutton dressed up as lamb it’s rat meat dressed up as caviar so gobble it down and await the 999 call of Dr Placing.
Do yourself a favour sell into the ramp and ‘Bank your ‘Feasibility Study’ back into your accounts! LOL!!!!