Drinking from the Drip Tray

Hi Scott,

Freehill Mining Limited is undertaking a fundraising to complete acquisition of the Yerbas Buenas mine a producing magnetite sands mining operation in Chile. Our son has handed over $5,000 to this fundraising venture. What are your thoughts on this company. He processed the payment on Friday 29 July – could he get his money back? Help, help, help…..

Cheers

Jenny

Hi Jenny,

Understand that this is the investment equivalent of drinking from the drip tray at the pub.

Well, lickety, lick. Let’s take a gulp.

Freehill Mining lodged a prospectus with ASIC in December 2015 to raise $3.5M, by way of a backdoor listing (taking over a worthless company).

ASIC had some concerns with the prospectus in January, and said ‘more information please’.

It appears (but isn’t clear) that the company didn’t raise the minimum subscription within three months, and was delisted by the ASX in March.

Now, the company is planning a front door listing. However the prospectus available from the website is the old one from December last year. Presumably, there’s a new one somewhere, but I haven’t been able to track it down.

Either way it won’t change my recommendation: why drink from the investment drip tray, when you can quaff as much Grange (low-cost index funds) as you want?

Yes, he could get his money back if the listing doesn’t proceed. Either way I’d be asking the company secretary for a refund. It could work.

Scott