Ann: Silver Lake and Doray Merger Presentation, page-57

Agree - both boards means the deal is seen as mutually beneficial and fair. 

The deal will be seen to de-risk both companies and allow both to organically grow by developing their existing high grade prospects, without needing to go to the market for a cash injection in a period where interest rates are like to rise substantially and credit will be much more  expensive, and covenants much more onerous.

A Gold price rise is not likely to save any cash strapped company - I'm sceptical about the likelihood of a big increase in the POG (which would imply a big fall in the US$) as the IOUSA and the EU will not stand for the rejection of their fiat currencies (which they print out of thin air) .... whereas a relatively stable POG will be tolerated.

It was inferred in the joint merger presentation, that although both companies had very good resources, and efficient operations, their individual maximum gold production meant that they had would not be taken up by institutions, which are favouring companies with mega production, multiple long life mines that had the potential to provide dividend security and capital security in an increasingly risk adverse investment universe. NST is the post child of the gold investment universe.

 A combined SLR/DRM means almost 250k oz p.a. which would catapult the new entity (Silver Doray dare I suggest) into the ASX 300 and institutions would then have to buy - currently they are sitting on the sidelines - they will not jump in until this is a done deal.

The SP fall has been on relatively low volume, and in the case of SLR peak volume was 4.3m shares on 14th November (a mere $2.2m).

 Moreover, Luke Tonkin (Cool Hand) is a hard head, and he will bring his ruthless unrelenting method of working good assets hard, combined with an aggressive sophisticated exploration program of existing near mill prospects, to ensure high value oz's and long mine life, which will lead to sustainable good profits. The reason SLR has $430m in carry forward tax losses, is because Cool Hand decided fairly soon after he became MD in 2014, that the Murchison 'assets' were not investment grade and hence they were shed ..... causing much angst and the SP crated to 14c.

I dare say that DRM 'non- investment grade assets' will not see any of the SLR cash - rather they will be offloaded to some punter, and the cash will be used to aggressively develop both SLR and DRM's potential high value prospects. 

 Its highly likely, all other things being equal, that the SP will very substantially re-rate once the combined entity is established, and the gross undervaluation by the market of the core assets will be removed .... the whole will be much greater than the sum of the parts.

Any 'shorts' will have to exit their positions in a low liquidity situation .... 

Will the SP be double by July 2019 if the new company keeps hitting targets and accumulating cash ??

Will Silver Doray be an aggregator or a target ??