a very interesting observation ..., page-10

Here is a post in response to Tooli that I accidently answered on the SLR thread

Hi Tooli,

I don't buy into the conspiracy theory of deliberate actions by IGR. Instead, I think it was a series of bad mistakes/management which got them into a serious pickle. Here is my theory/suspicions of what happened as a vague timeline.

1. CC has told me, and others over the years in response to possible merger in so many words.

Yes, we have been approached several times and we always listen and consider. Management has to always explore and consider various options. Blah, blah blah. So, over a period of time I'm sure, in fact positive, IGR and SLR have proposed various frameworks to each other but could never reach an agreement.

2. IGR let their financials get away from them and had to do a cap raising, probably believing that would be well received by the market. Instead it backfired and the market smelled desperation. I say again, I think they had completely lost the plot with their financials and found they were digging themselves into a hole.

3. When nothing worked, IGR were caught in the headlights like the proverbial deer extremely vulnerable to a hostile predator so were forced to flee into the arms of SLR, who could then pretty much dictate their terms. When you're digging yourself into a hole, the old saying? Throw away the shovel, which is pretty much what has happened. When the credit raising didn't work, I imagine Baker Steel and Acorn laid down the law and went for the best long term option for themselves.

So, in summary, yes, I'm sure IGR and SLR have had discussions over the years with no agreement. So a general framework had been established except for the details, and final agreement. So, when crunch came, only exact details needed to be bedded down, which can be accomplished quite quickly if you already have a general framework in place.

But then I think that through a whole series of bad decisions and corporate control that IGR management backed themselves into a serious corner that they couldn't turn around. Nothing nefarious, just plain bad planning and execution. After the CR I'm sure some serious predators were licking their chops and Baker Steel and Acorn would want the most logical outcome, which has always been an SLR/IGR tie up. I doubt ASIC will turn up much more than that.

Am I happy with the merger? Absolutely!
Am I happy with the way it came about? Absolutely not!!

So rather than devious machinations, I think IGR bumbled their way into the present situation. Very incompetently I might add.

So looking ahead, I'm hoping SLR can fine tune and monetize what's there. IGR probably would have stumbled along. As for CEB UG etal, if I were Les Davis, I would also halt it until my team thouroghly reviewed the geological data and mining plan almost from scratch. That is quite a long process. And in the statement released:

"Given the significant development programme that Silver Lake is undertaking at its Murchison Project and the multitude of ore sources that would be available to the enlarged Silver Lake in the Mount Monger region, Integra has agreed to defer further expenditure on the Cock-Eyed Bob underground development project pending the implementation of the Scheme."

This indicates to me that SLR see more and faster bang for the buck to get this started and use cash flow for further development elsewhere. Maxwells UG e.g. SLR/Les Davis seem to me to have good long term strategic planning, where IGR was more hodge podge.

Again, this is just my theory of how and what happened. I just believe more in the theory of incompetency than an intelligent undertaking. When/if it's all done and dusted, the future company looks pretty damn good."

And then a further response by myself

"I led myself into believing IGR had a good financial grasp because CC on top of his geology degree also has a mining economics degree. I suspect, and suspect only, that one day IGR woke up and said "Holy crap! We're in trouble here". Went cap in hand to Baker Steel, Acorn, and other large holders,(less than 5%,), and they said: OK, one more time. But we're getting our ounce of flesh. And if it doesn't work, then here's the way things are going down. Can't blame them, they are in business to get the best outcome for themselves."