Why is it 'Mythical'? It flew..
Why 'a waste of time & money'? An un-interceptable 40 tonne bomb load is going to make a dent.
That link has HMS Nelson getting mined & damaged in Dec 1939, two months later. Might as well look at what the damage was then.
...
Few minutes of googling later, found a source:
http://www.naval-history.net/xGM-Chrono-01BB-Nelson.htm
December
4th - At 0752 hours when entering the Loch at 13 Knots NELSON, when in position 5.4 cables 38 degrees from Rudha nan Sasan triangulation station, passed over and detonated a type TMB magnetic mine; although the massive explosion did not kill anyone 73 were injured, of whom 52 suffered lacerating injuries to delicate parts of their anatomies when ceramic toilet pans shattered in the blast. She took on a list to starboard and drew 39 ft forward. Before she could anchor in an appropriate position the light cruiser DRAGON who was fouling the berth had to be moved. At 1210 hours, with the destroyers VIMY and WARWICK secured to starboard and port she finally anchored.
(The mine was one of 18 laid by U 31on the night of 27/28 October, each one of which contained between 420 and 560kg of explosive. U-31 had been ordered to lay her mines within Loch Ewe but was unable to because of the effectiveness of the net between Lookout Point and Mellon Charles. Therefore U 31's captain Habecost laid 18 TMB mines across the narrow entrance instead)
The NELSON sustained serious structural damage and flooding. Within minutes she took on a 3¼ list to starboard caused by flooding between No. 23 and No. 80 bulkheads. Her bottom was also torn in several places, mainly to starboard; the outer bottom plating for a distance of 70 feet was forced inboard by about 4 feet, and flooding extended over a distance of 140 feet
. Main armament equipment, mainly the
ammunition supply machinery, was also damaged by shock. No boilers, engines, electrical, steering, or power machinery were affected.
Although seriously damaged she could not immediately be moved for repairs, due to the shortage of minesweepers.
The destroyers FAULKNOR, FORESTER and FURY reminded off the entrance to Loch Ewe carrying out A/S sweeps, as it was first thought that NELSON had been torpedoed.
(The Salvage tugs RANGER (409grt) on other duties, and DISPERSER (313grt) were diverted to Loch Ewe to assist. Destroyer ECHO escorted RANGER from Kilchattan Bay, Isle of Bute, arriving at Loc Ewe on the 5/12/39)