Sorry Cho, but this is all good news - SLR & DRM have an agreed...

Sorry Cho, but this is all good news - SLR & DRM have an agreed valuation of their respective assets (confirmed by the independent valuer), including cash, and the agreed respective valuations is that each DRM share is worth 0.667 SLR shares .... so although there will be extra SLR shares created by the conversion of the DRM shares to SLR shares (to effect the merger) their will be no dilution in asset valuation per share as each new share is backed by DRM's assets. Now, in fact, the sum of the combined parts is greater than the sum value of the parts uncombined, because in addition to now being a 250k oz p.a. producer, which will catapult to a high position in the ASX300, the merger preserves SLR cash reserves (which are expected to continue to grow unless something irrational happens like a dividend occurs) and SLR's tax losses remain an asset... which the combined entity is still able to us win the future. Corporate overheads should diminish and SLR credit rating is greatly enhanced .... SLR should be even better placed to participate in further gold miner consolidation with its expanded geological research capacity and improved BOD (at least on paper). I expect SLR value to continue to increase, in lock step with the POG ..... so SLR SP should be less volatile and represents a cash equivalent .... and probably will now have greater lending granted by margin lenders ..... if you are really confident that SLR is now a fox.