I don't think a consolidation is favourable for IGS SH.
IGS cant increase anything at all ! IGS doesn't own the interests in the Brazil project directly at all, IGS owns 93% of Latin Gold (UK) which owns the interests in the JV. As such if JV party doesn't contribute to exploration then Latin Gold can elect to pay and increase interests in JV company.
As such the idea to IPO Latin Gold is the concept that would increase SH value to IGS SH plus maybe one free option attached if permitted to participate. This would effectively raise $$$ at a higher share value in Latin Gold IPO which would offset dilution in IGS SH and create the liquidity and ultimate share value = win / win for IGS. It would mean IGS could recoup some value for funds spent and have further funds for exploration and potential increase in project if JV partner cant contribute.
I would look for an iron ore project, cheaper to find in Brazil than Oz and production costs cheaper = ++profit.
The key for the win is to IPO Latin Gold though.
IGS Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
