Ann: Silver Lake and Doray Merger Presentation, page-34

Hey people, SLR is not the dragon that you may think. It still has a buy recommendation from some investment houses and its SP moved from 31.5c to 65c over the past 12 months.
Mt Monger is a good resource with overall JORC resource of 3.7Moz vs 0.9Moz for DRM, while SLR's production is higher than DRM's, even if the AISC is about $270/oz higher at present. The company also had $110.5M on hand at the end of September with no debt.
Maybe someone else will come along and make a compelling bid for DRM but I would not count on it.
There is a current international trend for gold companies to merge and raise their production levels. A merger of DRM and SLR is part of this trend.
So what is driving this trend? Increasing US interest rates is probably part of the picture, along with declining gold production internationally.
The merger announcement refers to increased acceptability/recognition/valuation by financial markets by becoming a larger producer. I am not sure that this matters unless the companies see the need to raise finance going forward. DRM has certainly felt finance pressures and needs to expand Da Vinci and other lodes. Selling off Andy Well is a reflection of this.
From SLR's aspect, they probably just want to become bigger and have more stability with increased resources and production.
Why has DRM agreed to a merger rather look for a takeover with a SP premium? Please ask LJ with a few drinks inide him.