ipo latin gold for igs shareholders = value

IGS had ! $300 k ending 31 Dec 13 (?) and then in 1/4 said it would spend $250 k, that leaves IGS = $50 k at the end of March 2014 (ie: NOW).

IGS Commitments

: funding 33% of Latin Gold JV costs in Brazil
(latest JV commitment drilling / ect will have wiped out Latin Gold free carried portion of funding in the JV, so now Latin Gold via IGS as majority SH needs to provide up to 33% of JV expenditure going forward or dilute. JV dilution would be disaster for IGS SH).

: IGS free carried for $1m expenditure for Plumbridge until 31 Jan 2015 or 9 mths. (worst case scenario nothing found on the tenements the subject of the JV and SEG withdraw from the project and IGS ends up with 100% of ZERO)or ($1m spent prior to 31 Jan 2015 and then IGS has to contribute to costs or dilute (?). If something found in tenements how much for IGS to fund is % with no cash, dilution for IGS SH a further disaster.

: IGS Admin costs = some where around +$129 per 1/4.

Note: IGS approx. $50 k left ONLY.

Dilution for IGS SH should be a NO GO ! This can be avoided if IGS SH are put first !!

The Plan

(1) IPO Latin Gold - raise sufficient funds !
(2) IGS takes its position in IPO of Latin Gold at higher share value that IGS currently trading = the off set.
(3) IGS from Latin Gold IPO % of capital raised pay back % of IGS capital acquisition costs of Latin Gold = % cash flow return to IGS for other projects and ongoing costs.
(4) Potential for existing IGS SH to participate in Latin Gold IPO with one free option attached as value for support.

IGS SH would win in this and realise some value and have cash flow for IGS to move forward = NO BRAINER