I think if the merger goes through then the merged entity should be in a good position - it will be able to mine at a low cost per ounce at Deflector, while making use of SLR's pile of cash, and its accrued tax losses. It seems like the merger would de-risk both companies.
If the merger is voted down, it seems like that would be a negative for the DRM share price, as the board have unanimously recommended voting for the proposal, and going against their judgement would not be perceived as a good thing by the market.
SLR have had a chequered past, and I understand why some DRM holders wouldn't be happy about the merger, but their management team has been bolstered in recent years, and I think that both companies would stand to benefit from what the other can bring to the table.
DRM Price at posting:
45.0¢ Sentiment: Hold Disclosure: Held
