Mundine falls silent on Fuse Minerals refunds 

SUBSCRIBE

ANTHONY KLAN

One of Australia’s most vocal social commentators Warren Mundine has failed to tell his thousands of social media followers that investments in his failing “minerals exploration” company can be recovered. 

Investors in Fuse Minerals have until 5pm today to get their money back, after the company was on January 24 forced to extend its capital raising for the third time with the market shunning the “highly speculative” offer. 

Fuse Minerals — which as previously revealed has never earned a cent in revenue, never conducted any significant “minerals exploration” and is in danger of collapse — launched its initial public offering and prospectus on November 20, with a “close date” of December 4. 

The company is seeking to raise up to $10 million from the public at 20c a share, yet it has repeatedly failed to raise the minimum of $6m it needs to list on the ASX, raising just $1.86m by last month. 

By law Fuse Minerals must allow investors to exit if they apply to do so. 

Yet this information appears nowhere on the company’s homepage or its social media channels. 

Instead, it is disclosed at the end of a six-page “second supplementary prospectus”, dated January 24 and attached to the online 402-page, Fuse Minerals prospectus. 

It states investors can apply for their funds “in full” but requests must be received by “close of business” today. 

“In accordance with section 724(2) of the Corporations Act, if you applied for Shares under the Prospectus…[or] First Supplementary Prospectus…you may withdraw your application and be repaid,” it states. 

“Provided you give the company written notice of your wish to do so within one month…(i.e by the close of business on 26 February 2024)”. 

“An Existing Applicant who wishes to withdraw their application and obtain a refund must submit a written request to the Company’s share registry by mail (or) email,” the document states. 

That “second supplementary prospectus” shows Fuse Minerals had received applications for 9.295m shares, which is $1.86m, less that one-fifth of the $10m sought. 

“Fuse Minerals had received applications for less than one-fifth of the $10m sought”

Appreciate our quality journalism? Please support us and SUBSCRIBE HERE

Investors may exit – by 5pm today. Source: Fuse Minerals

Mundine was appointed Fuse Minerals chair in March last year and has been given 500,000 shares and 2 million options in the company. 

Since January 24 he has posted more than 150 times to social media, searches show — yet not once about investors being able to redeem their money. 

“Mundine has posted to social media more than 150 times since January 24”

Mundine has heavily spruiked Fuse Minerals for many months, including just weeks after the failed October 14 Indigenous Voice referendum. 

Mundine and Senator Jacinta Price were the two main faces of the “No” campaign, which made false claims of being a “grassroots” movement of “ordinary Australians”, when it was in fact a highly sophisticated operation bankrolled by a handful of the wealthy figures.

Mundine fronted the “No” campaign. Source: Advance

“I’m a big believer of mining industry and what it does for Australia’s prosperity. That’s why I’m chairman of Fuse Minerals,” Mundine announced in one social media post shortly after the referendum. 

“Join me for a lunch and hear about the upcoming IPO,” he said, in another of many social media posts spruiking the company. 

As chair Mundine is responsible for corporate governance at Fuse Minerals, and so for protecting the interests of investors. 

A prolific social media commentator, Mundine has continued to be highly active across LinkedIn, Twitter/X, and Facebook since January 24, although has made no mention that investors are legally entitled to exit Fuse Minerals. 

“These losers cannot accept the democratic vote,” he posted on January 27, alongside an article featuring Sydney Lord Mayor Clover Moore. 

One of more than 150 social media posts by Mundine since January 24. Source: Twitter/X

It can be revealed Mundine and Fuse Minerals CEO Todd Oxford are planning an online “fireside chat” to further spruik for investors this Wednesday — 48 hours after the deadline for investors to exit. 

“Hear first-hand about the path to our IPO listing on the ASX and what’s next for Fuse Minerals” says a post from the company. 

“Mundine and Oxford are planning a ‘fireside chat’ on Wednesday — two days after the deadline”

Axford posts to social media about Wednesday’s “fireside chat”. Source: Twitter/X

On Friday last week, Fuse Minerals remarkably posted that it was “on track with our IPO journey” — despite missing two deadlines to list on the ASX; being now legally required to allow investors to exit; and having been forced to extend its offer period eight-fold to date, from two weeks to more than 16 weeks. 

“We are on track with our IPO journey, despite an extremely challenging year for ASX IPOs in 20223,” the company posted to Twitter/X on Friday. 

That same post also appears on the Fuse Minerals site under “latest news”. 

It is one of four “latest news” posts from the company since January 24 — none of them regarding the ability of investors to exit. 

Fuse Minerals on Friday states it is “on track with our IPO Journey”. Source: Twitter/X

The “expected listing date” of Fuse Minerals was December 17, before the company changed it to February 8.  

It is now “April 15, 2024”, Fuse Minerals says. 

Mundine’s IPO blues: 

Nov 20, 2023 — Offer opened to public. Prospectus issued with “close date” of December 4 

Dec 4, 2023 — Fails to raise funds. “Supplementary Prospectus” issued. New close date of January 24

January 24 — Fails to raise funds. Just $1.86m raised. “Second Supplementary Prospectus” issued. Investors can redeem money

February 26 — Deadline for investors to redeem money

The “Second Supplementary Prospectus” signed and dated January 24 was “issued by the Company and has been authorised by a resolution of its Directors”, it states. 

On January 24 Mundine posted an image of himself to Twitter/X with the words: “Already (sic) to do battle for Fuse Minerals today”. 

He did not elaborate. 

Mundine’s post on January 24. Source: Twitter/X

For the part-time role of Fuse Minerals chair, Mundine is to be paid $120,000 a year and was paid an “advance” of “$55,250 plus GST” around March 11 last year, the prospectus states. 

If the IPO fails, his 500,000 shares and 2m options will be effectively worthless. 

Mundine and the other Fuse Minerals directors, Todd Axford, Vernon Tidy and Stephen Pearson, have repeatedly refused to comment when contacted by The Klaxon. 

“Don’t miss out”, the original offer closing date of December 4. Source: Twitter/X

An “independent, limited assurance report” dated November 10, 2023 — days before the prospectus was issued — warned Fuse Minerals was at risk of collapse. Ernst & Young partner Ryan Fisk wrote the company’s financial position meant there was “doubt about Fuse’s ability to continue as a going concern”.

Analysis of the highly complex 402-page prospectus states that at June 30 last year it had a stated “historical net current asset position” of just $178,749.

It also shows that between 6 November and 10 November, days before the offer, it conducted an emergency raising with an unknown entity, issuing 1.5m shares at just 10c a share — half the public asking price.

The Fuse Minerals prospectus claims the company has three “projects”, two in north-west Western Australia and one in Central Queensland, and lists nine exploration “tenements”, or licences.

Yet as revealed by The Klaxon last month, of those nine tenements, just one is actually owned by Fuse Minerals — a single exploration licence in Western Australia.

The highly complex, 402-page prospectus for Fuse Minerals shows if the float proceeds, it will acquire a string of exploration licences owned by private companies controlled by Fuse Minerals directors. Fuse Minerals was created on September 14, 2021, and owns no land or any other significant assets.

Please SUBSCRIBE HERE and support our quality journalism

Mundine and Dutton at a Business Sydney event last week. Source: Twitter/X

On Wednesday last week Mundine posted a picture of himself and Opposition leader Peter Dutton at an event run by a business lobby group.

“It was a pleasure to attend today’s morning event by Business Sydney and listen to a great speaker The Hon. Peter Dutton MP,” he wrote.

The post carries the hashtags “SydneyBusiness” and “AskMundine”.

BEFORE YOU GO: As you can see from the above, truly independent media is vital to inform us, the public. We simply can’t do it without you. Please contribute to help us continue our work by SUBSCRIBING HERE or making a ONE-OFF DONATION. Thank you!