I think it is both pertinent and important to review what Baldock's track record at Vergis (formerly Yukon/Nevada (YN) during his tenure there from May 2009 to June 2012 when he left become full time CEO at MMY. This gives us an insight as to how he may operate at MMY in taking on the large Mengapur project.
First, Jerritt Canyon, a gold mine operated by YN in Elko county, Nevada became nicely profitable in the latter half of 2007. Then environmental issues at the mine caused numerous slowdowns as numerous repairs and redos were needed. I find it interesting that Graham Dickson, the CEO whom was replaced by Baldock in 5/09, was made COO of the company. It seems odd to me that Dickson who was at the helm of YN when those problems became an issue was put in charge of operations when Baldock came in. Btw, Dickson continues to sit on the BOD of both Vergis and MMY now.
Numerous delays and cost over-runs occurred at Jerritt Canyon during Baldock's tenure there. His answer to raise capital to cover them was often to do Private Placements at or below below market prices, and generally with free warrants thrown in as well. Here's a list of the financings he arranged while CEO at YN:
8/09 $4 mil PP with below mkt pricing and free warrants thrown in.
9/09 40 mil "inducement warrants" issued at 12.5c each.
11/09 40 mil more "inducement warrants" were issued
12/09 $1 mil PP with stock issued at 10c plus free warrants
3/10 $5 mil PP with stock issued at 22c.
4/10 $10 mil PP with stock issued at 27c plus free warrants
7/10 $25 mil note financing including 25 mil warrants convertible at 25c.
2/11 Discounted exercise price of outstanding warrants by 18% to raise cash
3/11 $7.1 mil PP
5/11 $14.4 mil PP with free warrants and discounted exercise price of more warrants.
8/11 $120 mil forward gold purchase agreement executed for 174 thousand oz .of gold. Basically, he committed YN to sell future production at $690/oz.
2/12 Another forward gold purchase agreeement executed committing to sell gold at $716/oz which was also way below market price of gold.
5/12 $7 mil PP at 23c/ share with free warrants attached.
5/12 Another $9 mil PP at 23c with free warrants (3days after the previous one)
6/12 Baldock resigned to devote full time to MMY.
Whew, Baldock sure loved doing those private placements just like his early track record here at MMY indicates. His only problem now is that now pesky MMY stockholders are questioning their validity and he is being shot down by the regulators.
I'm not saying that the PPs or other financing weren't needed at YN-Vergis. But there is certainly no need for one at MMY now as the economic analysis of the Mengapur operation won't be completed until year end. In the meantime, Selinsing continues to bring strong profits and cash flow. Apparently in Baldock's case, old habits die hard.