Late Friday news broke that:
Investors have shown interest in a highly unusual $6 billion equity deal this morning that is being spruiked by junior miner Padbury Mining.
Despite starting the week with a landlocked, marginal iron ore project, and a market capitalisation below $70 million, Padbury has today told the ASX that it has raised $6 billion to build and operate a new version of the failed Oakajee Port and Rail project in Western Austdralia.
…The Oakajee port and rail project has been tried and failed several times, with Mitsubishi Development most recently abandoning it in 2013.
…Padbury told the ASX that it was negotiating with the WA Government, but there are reports today that the WA government is denying knowledge of the project.
This morning the news is no better. From the AFR:
Firms dressing themselves up as private equity are targeting vulnerable Australian junior explorers with funding offers too good to refuse.
Bankers and fund managers in the resources sector say a new breed of firm, claiming to specialise in natural resources, has been active in the Australian market since last year and targets cash-starved miners with good projects in the pipeline.
Ric Ronge, head of global resources at fund manager Pengana Capital, said the Padbury deal looked “dubious”, given the dollar value and the absence of detail.
…The private equity firms are consistently vague about their backers, but often say they represent a “very high-net-worth Australian investor”…Curiously, the meetings are held in cafes or the client’s offices, as opposed to the private equity firms’ offices.
Pump and dump scam?
