as holders, we have the right to ask questions, page-7

Hi Dratoz

As a long term shareholder I am extremely dissapointed in managements handling of its CR's and general poor management.

The article below from the West asks as many questions as it answers. How long had IGR and SLR been discussing a merger? Just before the diggers and dealers or for years?
It discusses the 2 main shareholders being aware off and approving the merger.

Are we to believe that this deal was suddenly put together just before the diggers and dealers conference? Are we to believe that it was agreed to without legal or expert advice been given. Perhaps the acceptance of the 2 major shareholders was considered suffecient advice to managenment?

I hope CC doesnt find his way onto some other unsuspecting board after this fiasco.


A PAIR of West Australian gold miners got together in a Kalgoorlie house the night before the Diggers and Dealers conference yesterday and signed a $426 million takeover deal with the dream of becoming one of the biggest gold producers in Australia.

The Silver Lake Resources amicable takeover of goldfields neighbour Integra Mining has been three years in the making, according to the soon to be newly wed managing directors of each company.

''We've known each other for a long time and the reason for that is we're neighbours,'' Silver Lake's managing director, Les Davis, said yesterday.

Under the deal Integra shareholders would hold about 40 per cent of the new Silver Lake, which aims to produce 400,000 ounces of gold per year by 2014.

Each Silver Lake share would be traded for 6.28 Integra shares, with a price of 45.2¢ per share marking a 44 per cent premium on Integra's trading price before the deal.

It was this premium that Mr Davis blamed for an 8 per cent dip in Silver Lake's price yesterday, despite what both companies argued was a win-win deal.

''I think the market will settle down and truly appreciate what this merger is bringing to our shareholders,'' he said.

Following a similar market move in June, St Barbara, another Goldfields miner, fell 17 per cent on the day it announced a takeover of Allied Gold Mining.

Integra's managing director, Chris Cairns, said his company's board unanimously backed the Silver Lake merger, even though Silver Lake's board would remain in full control of the new company.

The company now would be a very profitable gold producer, Mr Cairns said. It would be one of the biggest gold producers in Australia.

He said Integra's two major shareholders had ''voiced strong support'' for the deal. It would mean the new Silver Lake would hold a 6.6 million ounce gold resource, according to the companies.

Meanwhile, Silver Lake expects first production from its near complete Murchison project in the northern goldfields by the March 2013 quarter, Mr Davis said.

Although Mr Davis expected Murchison to be higher cost than its existing Mount Monger mine outside of Kalgoorlie Boulder, he said at current gold prices of about $1500 per ounce the mine should still clear a profit of $700 per ounce.

The Integra deal comes during a period of increased consolidation in Australian gold mining and Mr Davis said he would continue to assess opportunities.

''There are a lot of companies sitting out there in this market and if they're good exploration companies and they're sitting on some good assets you need to consider those,'' he said.

The deal is expected to be concluded by early December.

Diggers and Dealers continues to Thursday


Read more: http://www.watoday.com.au/business/silver-lake-pays-426m-for-integra-engagement-ring-20120806-23q9c.html#ixzz22uVita59

http://www.watoday.com.au/business/silver-lake-pays-426m-for-integra-engagement-ring-20120806-23q9c.html